Author: Marnie Roderick-Shepherd. General Manager. Roderick Insurance Brokers
Insurance for Tourism Businesses.
As a busy tourism operator you can be so involved in the day to day running of your business that insurance can sometimes seem like a necessary evil. However it is important to protect your tourism business to keep it operating & successful now & into the future and insurance should be considered the means to enable this to happen if something goes wrong.
What insurance do I need?
It can be a daunting task to work out what insurance is right for your business, so the first step is to answer the question. What type of risks am I most worried about? In other words, what keeps you up at night? Let’s start with the basics. At a minimum you need to protect your assets, your revenue, your liability exposure & your employees. Every business needs to be looked at individually to assess the risks they face specific to their business as the insurance you need will depend on the nature of your business, whether you employ people and where you are located amongst other things.
Insurance for my Assets
Your assets are usually pretty straight forward, you have a building, stock, equipment, vehicles, machinery and so on & you need to protect these things against fire, storm, malicious damage, theft and breakdown. Insurance policies can usually package these insurances into one policy.
Insurance for your Revenue
What would happen if a bushfire prevented potential customers visiting your business? Or a disaster occurred at your property during your peak tourist time?
Business interruption insurance is exactly that – if there is an interruption to the operation of the business due to an insured event like a natural or make made disaster that causes a reduction in your profits. This insurance keeps your business operational financially during your down time until you are fully operational again. It will help maintain net profit, continue paying your overheads, pay key employee wages & in some cases include additional working costs.
Insurance for your Liability
Public Liability Insurance is essential for all businesses. This cover will protect your business against legal liability for any property damage or personal injury caused by your business to customers or the public. This policy will provide cover for legal costs for Legal action brought against you. A minimum of $10 million cover is recommended for the tourism industry. It is imperative that your policy notes all activities you provide in your business. In addition if you have any subcontractors you should ensure that they also have Public Liability Insurance cover before you allow them to provide any activities or services.
Products Liability should also be included to provide protection against claims made by customers who consumed any products you provided.
Insurance for your Employees (and yourself)
If you have employees have you considered the potential exposures you face as an employer? By law you must have Workers Compensation insurance in Victoria if you pay more than $7,500 a financial year or if you have apprentices or trainees. This applies even if you are a small company with only one worker. If you are a sole trader, proprietor or a partner in the business you will not be covered under your WorkCover Insurance so in that instance you would need to consider income protection insurance.
Have you thought about what would happen if an employee was to steal from you? Employee Dishonesty insurance can cover your business for the theft of your property or money by an employee.
What happens if I have breached my duty as an employer? Management Liability Insurance provides protection to you and your company against the risks and exposures of running the company for example your liability for mismanagement. This cover can include Damages and claimant costs awarded against you, defence costs, investigation costs, civil fines and pecuniary penalties. Examples of claims can be unfair dismissal charges, misconduct by an employee and discrimination to name a few.
What else do I need to consider?
We recommend getting professional advice to help you decide on the most suitable insurance for your particular business. Insurance is complex and there are many choices to consider. If you do not have the right level of cover you might be left out of pocket following a claim or worse end up out of business.
We will help you get the best value for money insurance plan to suit your business.
We will meet with you to learn about your business and what matters to you
We will offer recommendations on how you have reduce the risks in your business.
We will explain the “must have” covers and the “should consider” covers
We will be available for you when you need some advice over the phone. You will always talk to a person.
We will deal with the insurance company on your behalf for all claims – taking the hassle out of claims for you.