Excursion and tour operator insurance--two names for the same thing--are crucial because they’re required for cruise lines to promote your tour. Obtaining the proper insurance allows you to attract guests through cruise lines and guarantees their safety, resulting in more revenue.
What Excursion Insurance Does
Excursion insurance offers three main areas of coverage: contingent general liability, auto liability, and watercraft liability. These three cover bodily damage and property damage to guests while also covering the damages for any vehicles or watercrafts used for your excursion.
Why Cruise Lines Require Excursion Insurance
Cruise lines are seeking to avoid liability for any injuries or damage occurred during a shore excursion. Medical expenses, especially in foreign countries or areas without ready access to a hospital, can be staggeringly high. If a customer is badly injured, he or she may be unable to complete their cruise and have to return home. A tour without the proper insurance is liable for these costs; but, with an insurance company to refer to, a cruise line can file the claims easily, helping your own business avoid bankruptcy.
Why Cruise Lines are Crucial For Your Business
The vast majority of guests learn about shore excursions through a cruise line. Cruises often hire Shore Excursion Directors that consult with guests on which company provides the best experience, and it’s worth developing a good working relationship with these people to help attract new customers.
Cruise lines notice when guests return on board with rave reviews about their experience, and are more likely to recommend your tour if they see people consistently enjoying themselves. They bring in massive revenue streams, so it’s important to accommodate their demand for the proper insurance.
Tour operator liability insurance or excursion insurance is not optional in the industry, primarily because cruise lines refuse to advertise companies that work without one. However, insurance also protects you from being directly liable for any damages or injuries that occur during your tour, preventing bankruptcy and providing guests with peace of mind.