Snorkelling
Scuba diving and cage diving are named. Snorkelling is not. Don't read that as cover: ask the underwriter and get the answer in writing.
TOUR OPERATOR INSURANCE
Tour Operator Insurance: What's Covered and What's Excluded
The tour operator policies we arrange are built for guided tours, not everything a tour can touch. This is where cover typically stops, the specific lines one specialist wording we place draws, what sits in the grey zone, and where other wordings draw the line differently.
PI + PLArranged together or separately
8 metresBoat length where one wording we place starts its watercraft exclusion
Excl. USAWorldwide territory, US jurisdiction excluded, on one wording we place
Premiums and outcomes described are specific to this client and indicative only. Your own terms will depend on your circumstances and the insurer.
THE SHORT ANSWER
What does tour operator insurance not cover?
Tour operator policies we arrange generally do not cover adventure activities, registered vehicles, cancellation, supplier insolvency or injury to your own staff. At least one specialist wording we place also excludes aircraft and drones, boats over 8 metres, communicable and notifiable disease, Do Not Travel destinations, claims brought in the United States, cyber events and sexual misconduct allegations. What these policies are designed to cover, subject to their terms, is your liability for injury and property damage on guided tours, food and drink you supply as a product (subject to the disease exclusions), your liability for contractors' conduct, and financial loss from itinerary, booking and advice errors. Several activities are not named either way and need the underwriter's answer.
Wordings differ between insurers, sometimes in the operator's favour and sometimes not. Read your own schedule and endorsements, not a summary. General information only. It doesn't take into account your objectives, financial situation or needs, and it isn't legal advice.
- Built for
- Guided walking, food, cultural, sightseeing
- Excluded by name
- Adventure activities
- Insured elsewhere
- Vehicles, staff, cyber, aviation
- Not insured on these policies
- Cancellation, insolvency; disease on some wordings
| Situation | Position on the policies we arrange | What to know |
|---|---|---|
| A guest is injured on a guided walk, tasting or cultural tour | Can respond | Public liability, where you're legally liable, the injury happens in the policy period, the tour is described on your schedule and no exclusion applies. At least one specialist wording we place has no liquor exclusion in its base wording. Confirm with us that no endorsement on your schedule adds one. |
| Your group damages a venue's property and you're held liable | Can respond | Public liability, where you're legally liable. Property in your own care, custody or control has only a limited extension. |
| Food or drink you supply injures a guest | Check | Products liability can respond. An allergic reaction isn't a disease, but how a claim is treated still depends on the wording. On at least one wording we place, illness from a communicable or notifiable disease is excluded. |
| Your contractor's conduct makes you liable | Can respond | Your own liability, where you take reasonable steps to check the contractor holds their own cover. The contractor isn't insured by your policy. |
| An itinerary or booking error costs a client money | Can respond | Professional indemnity, where you're legally liable and the claim is made and notified in the policy period. It can respond to the client's extra costs, not the refund of the tour price. |
| A coach, minibus or 4WD accident | Not covered | Registered vehicles used by or for you are excluded, including hired vehicles and chartered coaches. CTP and commercial motor may respond, and an injury can fall between CTP and public liability. |
| Adventure activities on the named list | Not covered | Excluded by endorsement on at least one wording we place. Needs a different market. |
| Drones, scenic flights, balloons | Not covered | At least one wording we place excludes aircraft of any kind. |
| A boat over 8 metres | Not covered | On at least one wording we place, excluded if used by or for you, unless someone else owns and operates it and it's used for business entertainment. Whether a paid cruise qualifies is an open question. |
| Cancellation of a tour | Not covered | Generally excluded. One wording we place does it by endorsement. |
| A supplier goes broke | Not covered | Generally excluded under professional indemnity. One wording we place does it by endorsement. |
| A destination rated Do Not Travel | Not covered | On at least one wording we place, excluded if the rating applied before the tour started. |
| A claim brought in a US court | Not covered | On one wording we place, territory is worldwide and jurisdiction excludes the USA. |
| Injury to your own employees | Not covered | Workers compensation. |
| A hack, outage or data breach | Not covered | A separate cyber policy. |
For how each section works, read public liability for tour operators and professional indemnity for tour operators.
Heights and air
- Abseiling, rock climbing, zip lines and via ferrata
- BASE jumping, bungee, cliff diving
- Hang gliding, paragliding, parasailing, parachuting
- Helicopter activities, heli-hiking and heli-skiing
- Hot air balloon rides
Water
- Scuba diving and cage diving
- Surfing
- Water skiing and water snowboarding
- White water rafting and Class 3 to 5 white water
Wheels and animals
- Motorcycles, ATVs and racing
- Mountain biking
- E-bikes, Segways and scooters
- Horse riding and other equine tours
- Sledging (including with dogs), rodeos and polo
- Driving your own vehicle in a foreign country
Snow, ice and outdoors
- Skiing, snowboarding and snow mobiles
- Ice climbing, ice fishing and mountaineering
- Caving and canyoning
- Backpacking trips and hunting
Other
- Contact sports and professional sports
- Stag and hen parties
- Working holidays on ranches or lodges
If one of these is a side activity on an otherwise ordinary tour, the exclusion still applies to that activity. It needs a different market. If a separate operator runs and insures that activity, collect their certificate, but that wording still won't respond to a claim against you arising from it.
The grey zone. These six activities are not named on the list. That doesn't make them covered. Insurers treat them differently, so each one needs to be described in your proposal and answered before you bind.
Calm-water kayaking
The list names white water of Class 3 to 5. A flat-water paddle isn't named either way.
Ordinary bicycles
Mountain biking, e-bikes, Segways and scooters are named. A pedal bike on a sealed path is not.
Jetboats
Racing is named and jetboats are not. A boat ride also raises who owns and runs the vessel, and whose marine policy may respond.
Tractor and hay rides
Working holidays on ranches are named. A short ride at a farm visit is not, and it raises a vehicle question as well.
Camino-style walks
Backpacking trips and mountaineering are named. A supported long-distance walk with luggage transfers isn't defined on either side of the line.
Vehicles. Public liability on the tour operator policies we arrange excludes liability arising from any vehicle that is registered or required to be registered, including hired vehicles and chartered coaches used by or for you, and any liability that is insured or required to be insured under a compulsory scheme. The carve-backs are narrow, such as loading or unloading away from the road. On at least one specialist wording we place, nothing covers a coach while it's driving, and a coach you hire is also caught as property in your care. CTP is fault-based in Queensland, WA and SA, so an injury can fall between CTP and public liability. See vehicles and passenger liability.
Aircraft and drones. At least one specialist wording we place excludes aircraft of any kind used by or for you, and its definition includes a drone. There's no size carve-back. Helicopter activities and hot air balloon rides are on its adventure list as well.
On drones, CASA's plain English guide for micro and excluded operations says no aviation rule requires the owner or operator of a remotely piloted aircraft to hold public liability insurance. The same guide suggests operators consider liability cover and notes that land and park administrators can ask to see a certificate before granting a permit. So the regulator doesn't mandate it, your tour policy may exclude it, and the land manager may still want it. That's a separate aviation liability policy.
Boats over 8 metres. On at least one specialist wording we place, watercraft over 8 metres used by or for you are excluded, unless someone else owns and operates the vessel and you use it for business entertainment. Whether a paid cruise for tour guests counts as business entertainment isn't settled in that wording. Insurers treat this differently, so raise it with us before you bind, and collect the vessel operator's certificate. Boats of 8 metres or under aren't caught by that exclusion, but the activity on the water can be caught by the adventure list.
Food and drink you supply to guests is treated as a product, so products liability is in play. An allergic reaction isn't a disease, but how a claim is treated still depends on the wording, so raise it with the underwriter.
At least one specialist wording we place then excludes two things under public liability: any communicable disease, and any disease that is notifiable to government under any law. Its professional indemnity section excludes communicable disease. Wordings differ between insurers on disease.
What's on the national list. The Australian Centre for Disease Control publishes the nationally notifiable diseases. As at October 2026 the gastrointestinal group includes salmonellosis, listeriosis, campylobacteriosis, hepatitis A, shigellosis and Shiga toxin-producing E. coli. States and territories keep their own lists as well. The communicable disease exclusion does not depend on any notifiable list, so an illness that isn't on a list can still be caught by it.
We don't say food illness is covered, and we don't say it's never covered. Raise your food arrangements with the underwriter before you bind. More in food and alcohol on tours.
Cancellation. Tour operator policies we arrange generally exclude cancellation. On one specialist wording we place, the tour operator endorsement excludes sums arising from the cancellation of a tour or activity. Add that wording's communicable disease exclusion, and a pandemic-driven cancellation or destination shutdown sits outside that policy.
Insolvency. Professional indemnity on the tour operator policies we arrange generally excludes supplier insolvency. One wording we place does it by endorsement, excluding claims arising from your own insolvency or that of any third party supplier: an airline, carrier, accommodation provider, ground handler, cruise operator or tour wholesaler. Professional indemnity also doesn't refund the tour price.
Do Not Travel. On at least one wording we place, there's no cover for injury or damage on tours run wholly or partly in a destination the Australian Government rated Do Not Travel before the tour started. Do Not Travel is level 4, the highest of Smartraveller's four advice levels. If a destination is reclassified during a tour, that wording requires you to make every effort to repatriate your customers.
US jurisdiction. On one wording we place, the territory is worldwide, but claims brought in a US court or under US law are excluded unless a USA extension is added. It isn't on the schedule we hold. For tours outside Australia, that wording also requires you to take reasonable steps so every guest holds comprehensive travel insurance. See insurance for overseas tours.
Cyber. Tour operator policies we arrange typically exclude booking system outages, hacks, loss of data and data protection breaches from both professional indemnity and public liability. If you take bookings and payments online, that's a separate cyber policy.
Sexual misconduct allegations. On at least one specialist wording we place, sexual harassment, molestation and assault allegations are excluded under both public liability and professional indemnity, with no carve-back. Assault by you or your staff is also excluded unless it was done to protect people or property from danger. Guide screening, supervision rules and a complaints process are your controls here, not the policy.
Contracts that waive recovery rights. Coach, cruise, venue and park agreements can include a release or hold harmless clause in the other party's favour. If you waive your right to recover from someone without the insurer's prior consent, cover for that claim can be removed to that extent. Liability you assume under a contract is covered only as far as you'd have been liable without it. Send the contract to us before you sign so we can check how it sits with your insurance, and have your lawyer review it. See waivers and booking terms.
| Issue | Other published wordings | One specialist wording we place |
|---|---|---|
| Boats | One published Australian tourism wording (a 2018 wording) excludes boats over 5 metres or off inland waters. Another (a 2025 wording) sets the line at 8 metres. | 8 metres, with the business entertainment carve-back. |
| Vehicles | Two published wordings (a 2018 wording and a 2025 wording) keep public liability cover for a vehicle-related injury where the compulsory scheme does not respond, provided the reason isn't a breach of vehicle law. That is in their base wording; endorsements not checked. | Does not include that carve-back. |
| Disease | Two published wordings, a 2018 wording and a 2025 wording, have no communicable disease exclusion in their base wording; endorsements not checked. The 2025 wording excludes microorganisms but keeps cover for products meant to be eaten or drunk. | Excludes communicable and notifiable disease. |
| Powered bikes | At least one agency's published appetite lists bicycle tours including e-bikes, and Segway tours, as acceptable. At least one online product can't be bought online for cycling tours. | Excludes e-bikes, Segways, scooters and mountain biking. |
| Contract parties | One published wording automatically covers parties you must insure under contract and waives recovery against them. Another covers a third party's interest only if it is noted on the certificate. | Can extend to others at your request. A waiver of recovery needs the insurer's consent first. |
None of this ranks one policy above another. It means a summary, including this one, can't tell you what your own policy does. Read the schedule and endorsements you're given, and ask about anything on this page that touches your tours.
FREQUENTLY ASKED QUESTIONS
Tour Operator Cover and Exclusions FAQs
Tour operator policies we arrange generally exclude adventure activities, registered vehicles, cancellation, supplier insolvency and injury to your own employees. At least one specialist wording we place also excludes aircraft including drones, boats over 8 metres, communicable and notifiable disease, tours to Do Not Travel destinations, claims brought in the United States, cyber events and sexual misconduct allegations. Wordings differ between insurers. Some of these risks are insured elsewhere. Others are not insured on these policies at all.
Not on at least one specialist wording we place. E-bikes, Segways and scooters are on its excluded activities list, along with mountain biking. Wordings differ on this point: at least one agency's published appetite lists bicycle tours including e-bikes as acceptable. If powered bikes are part of your tour, tell us up front, because it may need a different market.
Neither is named on the excluded list of at least one specialist wording we place, which names scuba diving, cage diving, surfing, water skiing, parasailing and white water of Class 3 to 5. Not being named isn't the same as being covered. Insurers treat these activities differently, and the underwriter decides based on what you describe, so put the activity in your proposal and get the answer before the tour runs.
CASA's guide says no aviation rule requires a drone owner or operator to hold public liability insurance, and suggests operators consider it. At least one specialist tour operator wording we place excludes aircraft of any kind, including drones, so drone use needs its own aviation liability cover. Park and land managers can also ask for a certificate before they issue a permit.
Don't assume so. Food and drink you supply is a product, and products liability can respond to an injury such as an allergic reaction. But at least one specialist wording we place excludes communicable diseases and any disease notifiable to government. Salmonellosis, listeriosis and campylobacteriosis are nationally notifiable. Ask the underwriter how the exclusions apply to your food arrangements before you bind.
On at least one specialist wording we place, the exclusion applies to destinations rated Do Not Travel by the Australian Government before the tour starts. If the rating changes during a tour, that wording requires you to make every effort to repatriate your customers. Monitor Smartraveller for each destination and have a written plan for getting a group out.
On one specialist wording we place, the territory is worldwide, so where your guests come from isn't the test. The exclusion is about jurisdiction: claims brought in a US court or under US law are excluded unless a USA extension is added, and it isn't on the schedule we hold. A choice of law clause in your booking terms won't necessarily stop a claim being brought in the US, so ask your lawyer about it.
It can. Liability you take on in a contract is covered only to the extent you'd have been liable anyway. If you waive your right to recover from a supplier or venue without the insurer's prior consent, cover for that claim can be removed to that extent. Send it to us before you sign so we can check how it sits with your insurance, and have your lawyer review the contract.
RELATED GUIDES
More on Tour Operator Insurance
Tour Operator Insurance (main guide)
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Public liability for tour operators
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Professional indemnity for tour operators
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Tour operator insurance cost
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What you need for a quote
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National park and council permit insurance requirements
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Booking platform and cruise line insurance requirements
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Vehicles and passenger liability
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Photography tour insurance
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Food tour insurance
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Cruise shore excursion insurance
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Sporting event tour insurance
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QUOTE REQUEST
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Check Your Tours Against the Exclusions
Send us your tour descriptions, including anything in the grey zone. We'll put the questions to the specialist insurers and underwriting agencies we approach and bring back their answers.