TOUR OPERATOR INSURANCE CASE STUDY
Cultural Tour Operator, Inbound and Outbound Programs, $20M Public Liability and PI
A new NSW-based tour operator designs immersive cultural programs for groups visiting Australia and for Australian groups visiting Asia. It needed public liability and professional indemnity in place quickly, with a certificate of currency before it could start.
THE SITUATION
A new tour operator in NSW contacted Tank Insurance needing public liability and professional indemnity for a business that runs in two directions.
- Inbound programs. Company delegations and international students visiting Australia on weekend and long-weekend programs in NSW built around Aboriginal culture, architecture and nature.
- Outbound programs. Australian companies and students travelling to Asia.
In both directions, local tour companies run the coaches and accommodation. The operator designs each program and provides the cultural consulting that ties it together. That mix of tour operating and advice is why both public liability and professional indemnity mattered.
The business was new, and it needed a certificate of currency urgently before it could start.
OUR APPROACH
We've found tour operator public liability hard to place on its own in the past. We approach several specialist insurers and underwriting agencies, and some write PI and public liability together while others write one or the other. For this operator, we went to a specialist underwriting agency backed by Lloyd's that writes tour operators, and asked for both covers on one policy.
- The activities were described precisely. We referred the risk to the underwriter, and the business activities were clarified: the operator designs the programs and provides the cultural consulting, while local tour companies run the coaches and accommodation.
- Programs in Australia and overseas on one policy. The schedule described the programs in Australia and overseas, with a worldwide territory and US jurisdiction excluded.
- Risk controls were set out before cover was confirmed. The underwriter asked for the operator's safety and emergency procedures, participant declarations where appropriate, pre-program briefings, checks on guides, suppliers and service providers, and incident, accident and complaint reporting.
THE CHALLENGES
The first challenge was time. Terms came back within a day of the business activities being clarified, and the policy was arranged the same week.
The second was the territory. The programs overseas needed a worldwide territory, and the policy was placed with a worldwide territory and US jurisdiction excluded.
The third was the policy's limits. It excludes cancellation of a tour, claims arising from the insolvency of a supplier such as a hotel or ground handler, and tours in any destination the Australian Government rates Do Not Travel before the tour starts. For tours outside Australia, the operator must take reasonable steps so every participant holds comprehensive travel insurance, and it must take reasonable steps to make sure the local tour companies hold their own liability cover.
THE OUTCOME
$20 million public liability and $1 million professional indemnity were placed on one combined policy at approximately $1,850 including fees.
Final Solution: One policy covering public liability ($20 million, $1,000 excess) and professional indemnity ($1 million any one claim, $2 million in the aggregate), worldwide territory excluding US jurisdiction, placed the same week for a new cultural tour operator.
This case records one historical outcome. One past placement: your price and terms depend on your risk. Current appetite, premium, timing and terms depend on the complete risk at the time of application.
For the wider buying context, see our tour operator insurance guide, tour operator insurance cost and cultural tour insurance.
TOUR OPERATOR INSURANCE QUESTIONS
What this placement answers for other tour operators
How much did PI and public liability cost for this tour operator?
Can one policy cover tours in Australia and overseas?
Why does a tour operator need professional indemnity as well as public liability?
What did the underwriter ask for before confirming cover?
How quickly can tour operator insurance be arranged?
TOUR OPERATOR INSURANCE
Put this placement in context
Case-study results are historical and are not a promise of current pricing, capacity or policy terms. This page is general information only and does not take account of your objectives, financial situation or needs.
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