As a tour operator, having adequate insurance is essential for the safety and success of your business. However, having insurance for your shore excursion is an important expense that can save you money in the long run if any unforeseen trouble arises on one of your tours. Here are 3 reasons, it should become clear that having excursion insurance is a good investment:
1. Protect your Business
Your purpose is to give customers a memorable experience. But if anything happens to go wrong on one of your tours, you could be bankrupt before you know it. With insurance coverage ranging from general liability to watercraft liability, you can protect yourself and your business from any mishaps that are sure to come along.
Your insurance should specifically cover third-party claims for injury, property damage or loss, and legal costs for settling claims. The last thing you want is one accident to ruin your business and possibly even future opportunities.
2. Satisfy the Requirements of the Cruise Line
While protecting your business is essential, it won’t be necessary if you can’t get business in the first place. In the best interest of their passengers, cruise lines are unlikely to recommend or even advertise your shore excursion unless you have adequate insurance. This gives them the peace of mind of not having to worry about being party to any lawsuits or settlements that may arise in the case of an accident.
Having insurance isn’t the only way to get noticed by cruise lines, but it’s probably the most important.
3. Put people at Ease
Your most important assets are your customers, so it’s important that they are put at ease in regards to affording them financial protection. Some of them may have travel insurance that would cover anything that could go wrong, but many don’t bother to take on that expense.
Even so, don’t expect your customers to take responsibility for any accidents that may occur on your tour. Customers and cruise lines will notice if you are unwilling to take ownership for your shore excursion by providing adequate insurance and your profits (or lack thereof) will show. Remember that cruise line passengers want to spend money on shore excursions, but as the tour operator, it is your responsibility to put them at ease regarding emergencies.
The Bottom Line
Insurance is never a fun topic to think or talk about…especially at dinner parties. But when you think of having adequate insurance for your shore excursion as an investment, you are more likely to experience the return and minimize your risks. Not only are you protecting your business from financial ruin, but you are also increasing your profits by putting both the cruise lines and the cruisers themselves at ease.