Major Risks Covered by Tour Operators Liability Insurance in the UAE’s Tourism Sector

Introduction

When you step into a career as a tour operator, along with focusing on the facilities you provide for your tourists, you need to be aware of the risks that may occur and how you can mitigate them. A tour operator is posed with diverse risks that may disturb their whole career causing financial pitfalls, reputational damage, and so on. To avoid the consequences of the risks of a tour operator in the UAE’s tourism industry, a suitable tour operator’s liability insurance can be obtained.

A tour operator’s liability insurance is an effective way to avoid financial burdens in case any odd situation comes up during a trip. However, tour operators, both new and experienced ones, often ask queries about the risks covered by tour operators’ liability insurance. They intend to know which risks usually come under that insurance coverage.
In this blog, we will discuss the major risks covered by tour operators’ liability insurance to help you make an informed decision about purchasing the insurance. 

7 Major Risks Covered by Tour Operators’ Liability Insurance

Many risks associated with the planning and execution of trips and tours are covered by tour operators’ liability insurance when it is obtained with the help of a leading insurance provider.
 The insurance covers the following crucial risks:

Slips and falls:

In case an unforeseen incident of slip and fall takes place, tourists may sue the tour operator for not warning them about slippery floors or other negligence. In such scenario, if tour operators’ liability insurance is obtained, it helps you meet the financial responsibilities and legal fees arising from the tourists’ claims. The same is applicable for other personal injury claims as well.

Food poisoning during trips:

If by consuming meals while traveling tourists fall sick or any serious illness restricts their movement, they may blame the tour operator for not paying attention to food safety while arranging the meals. In that case, with the help of liability insurance, you can pay the medical expenses to cure the affected tourist while managing other expenses raised from the claim.

Operational errors:

Also known as “errors and omissions”, operational error risks are covered broadly by tour operators’ liability insurance. For example, if you make any mistakes booking clients’ travel tickets and it causes trouble for them, they may claim compensation against that, which you can pay with the insurance amount.

Accidental property damage by/of tourists:

If a tourist, while traveling under your supervision, mistakenly damages any third-party property, liability comes upon you. Similarly, if any damage or loss happens to your tourists’ property by you or any of your teammates, it becomes your responsibility to pay the repair expenses. The insurance covers this repair cost saving you from such unexpected expenditure.

 Accidents or errors related to transportation.:

During a journey, whether a long tour or a short trip, transportation becomes a crucial factor. For carrying luggage or sometimes people, tour operators need to arrange transportation facilities as a part of their travel package. Any accident or mistake that happens with transportation may lead to costly repair and medical facilities. Therefore, obtaining a tour operator’s liability insurance becomes crucial to cover these costs.

Poor service at accommodations or hotels:

Accommodation facilities are another vital responsibility of tour operators. Before any tourist raises a claim against any mismanagement or poor service, you should be prepared with liability coverage to cover the legal fees and other expenses.

Natural disasters and alarming weather conditions:

Due to unprecedented weather hazards or natural disasters, trips may get canceled. Damages or losses may also take place if any crucial natural calamity, like rainfall, storms, etc., comes up in the middle of the trip. With the broad coverage of tour liability insurance, you can safely pay for the damages and losses or recover the losses due to cancellation or postponement of the trip.

About CoverB

As a reliable insurance Advisory in the UAE, CoverB helps to obtain a wide range of corporate insurance policies for business owners and individuals. Among various policies, tour operators’ liability insurance is one of the most effective policies for those who operate trips and tours as individuals or own a tour operating company. With its team of advisory experts, CoverB is everyone’s one-stop destination for all types of insurance needs.

Final Words

With diverse activities like rafting, hiking, etc., weather fluctuations, and other reasons available, trips include major and minor risks. A suitable tour operator’s liability insurance policy can help a tour operator cover all risks.

In other ways, when planning for insurance, it is important to ask the insurer about the available customization options, exclusions, and add-ons. After that, you can decide which coverage limit suits your needs as a tour operator the best.

Are you in search of a dependable insurance solution for your business requirements? Connect with CoverB experts today to secure your reputation and save your money with the help of the best-suited tour liability insurance policy.