When holidays are upon us, many outdoor activity and tourism businesses gear themselves up for the annual influx of holiday makers. Whether you own a charter fishing boat, are a large adventure company catering for thrill-seekers, or give pony rides at the local nursery – if you don’t have the necessary insurance cover you could land yourself in hot water.
“With so many holiday-makers seeking out adventure and leisure activities to enjoy during their end of year holidays, business opportunities within the tourism and leisure industry are considerable,” notes Jan Drahota, Head of Specialist Risk and Projects at Indwe Risk Services.
This is good news for the economy but can spell financial ruin for anyone, providing any kind of service within the leisure and tourism market, who isn’t adequately insured against potential risk.
“Small business owners, or seasonal businesses which only run during holiday periods, often don’t have adequate cover, or any cover at all, putting them at considerable risk,” Jancontinues, “because, should something go wrong, they’d become personally liable for damages.”
Marnelle Ward, a liabilities specialist at Indwe, explains:
“To enjoy full insurance cover, businesses should purchase both Public Liability and Professional Indemnity.”
“Public Liability insurance covers your business against damage caused to property and accident or injury occurring to a customer, or member of the public, as a direct result of your business activity. Professional Indemnity insurance,” she clarifies, “is required by anyonewho offers their expertise, advice or instruction in an expert, or qualified, capacity; it is no longer the preserve of those in the medical, legal or consultancy professions.”
This dual layer of cover would protect, for example, a pony ride service provider against claims made because a child fell off and hurt themselves, or cover a river rafting company should there be a drowning, or injuries, during a trip.
Failure to have any, or insufficient, cover leaves you exposed to being sued in your personal capacity. “Your home and any other assets will be at risk,” warns Marnelle. “Remember, the legal costs to defend a claim against someone who was injured while participating in an activity could be considerable; by taking out the right cover, your insurance will cover the legal costs.”
Different businesses have unique and varied exposures to risk and require different levels of indemnity and liability protection. Says Ward: “The ‘one policy fits all’ model is undesirable and often leaves business owners inadequately, or incorrectly, insured.”
“A guesthouse owner has a very different level of risk and liability, compared to that of a white-water rafting adventure experience company,” explains Jan. “It’s wise for a business owner to discuss their specific needs and potential risk areas with a broker, who has the necessary industry expertise to guide them through the minefield of business insurance. Insurance cover can then be tailor-made for their individual business and risk,” he concludes.
Know your business, identify your risk and adequately insure against it. Do everything you can to fulfil the duty of care you have to your customers and clients, and enjoy a safe, worry-free year!