Tour Operators Liability Insurance: Major Exclusions

Introduction

As a tour operator, you are likely to arrange diverse trips and tours in mountains, sea beaches, forests, country areas, abroad, and so on. Your tourists may include individuals with various demographics. Managing everything from scratch therefore may include versatile liabilities for tour operators, which they should be aware of and fulfill if they arise. With ever-evolving risks and liabilities in tours, the tourism industry often experiences claims against damage, injury, loss, etc., that tour operators are held liable to compensate. All such liabilities that can lead to their financial loss and can be covered by tour operators’ liability insurance. 

However, obtaining tour operators’ liability insurance offers comprehensive coverage but may not include certain cases. You should know about those exclusions beforehand to manage odd situations accordingly if they occur. This blog discusses major exclusions of the tour operators’ liability insurance and helps you understand its scope of coverage.

Major Exclusions in Tour Operators’ Liability Insurance in the UAE

Tour operators’ liability insurance is an effective way to protect a tour operator’s business reputation and maintain financial stability. But not knowing about the common exclusions in the policy may lead to confusion and stress. So, here are some of the major exclusions mentioned below:

Pre-existing health conditions:

If it is proven that tourists already have certain diseases or poor health conditions, and due to that some mishaps take place while traveling, the outcome may not be covered by the tour operators’ liability insurance. For example, if a tourist has been suffering from asthma for several years, and during the recent travel, they get breathing trouble and need hospitalization, the cost is likely to be excluded from the tour operators’ liability insurance coverage. 

 The impact of alcohol and drug use on travellers:

If tourists go through any accident or unwanted incidents while being under the influence of alcohol, drugs, or any narcotic items, the loss or damage may be excluded from the insurance coverage. Instead of the tour operator, tourists themselves can be held responsible for the costs arising from all such incidents. Regardless of the type or severity of mishaps, such scenarios are often excluded from the coverage.

Mental or emotional disorder problems:

Insurers mostly exclude cases of mental health issues from the tour operators’ liability insurance coverage. The issues comprise but are not limited to depression, schizophrenia, bipolar disorder, anxiety disorder, etc. Hence, if any tourist comes up with a claim for the cost of treating such problems, the claim is likely to be rejected.

 Pre-scheduled hospitalization:

If a tourist is traveling for medical treatment in domestic or international .the cost is not covered by tour operators’ liability insurance. The policy is mainly designed for emergency expenses, not for pre-planned health check-ups, medical administration, or hospitalization.

 Intentional risk exposure:

Participating in adventure sports, walking or driving through risk-prone areas, etc. is usually not a part of the liability insurance for tour operators. Such adventure sports include snowboarding, skydiving, rafting, bungee jumping, etc. If a tourist suffers from any damage or loss while participating in these activities, the damage or loss are likely to be excluded from the policy coverage.

 Voluntary cancellation of the trip due to bad weather:

If a tourist cancels their trip considering bad weather conditions, the insurance does not provide the costs of cancellation as this is not supposed to be a tour operator’s responsibility. On the other hand, for scenarios like flight cancellations due to extreme weather condition alerts, tour operators can be held liable, and they can fulfill their financial obligations with the liability insurance’s help.

War or war-like situation:

If any war, terrorism attack, or similar situations occur during a tour causing any kind of damage or loss, and a claim is raised against them, tour operators’ liability insurance does not cover that. In such turmoil’s, insurance companies are not likely to consider the damage as tour operators’ liability.

The exclusions may vary depending on the insurance companies. Add-on coverage options are also available to cover some of these exclusions. So, go through the policy coverage terms well before you obtain it.

About CoverB

As a reliable insurance  advisory platform in the UAE, CoverB helps to advise 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. It is helpful for those who operate trips and tours as individuals or own a tour operating company. With a team of experts and expertise in insurance advisory. CoverB,the insurance the advisrory is everyone’s one-stop destination for all types of insurance needs and reliable insurance service.

Final Thoughts

Tour operators are responsible for ensuring safety, convenience, and comfort for their clients. In some unwanted circumstances, they may be held liable for the outcomes, like injury, loss, damage, etc. Although tour operators’ liability insurance covers regular slip and fall cases in a tour, bodily injury during hiking, and poor services from hotels where tourists eat or stay, it has certain exclusions. A clear understanding of what the policy does not cover helps you to plan your financial resources accordingly and manage tours safely and with dignity.

Get the right tour liability insurance for your business. Contact CoverB today for expert guidance and cost-effective coverage.