What is Adventure Tourism & Why Is Outdoor Guide Insurance Needed?
Adventure tourism is a type of travel that involves exploring and engaging in activities in remote locations. This form of tourism often includes outdoor or physical activities that include risk and excitement, such as hiking in rugged landscapes, whitewater rafting, and zip-lining in the great outdoors. Additionally, adventure tourism is the fastest–growing sector of tourism in North America.
Although adventure tourism is thrilling and exciting, it comes with many risks, such as injuries from high-impact activities, accidents during extreme sports, and unexpected medical emergencies. Due to these risks, any guide or adventure tourism company must invest in insurance that protects organizations, employees, and business owners.
What Does Adventure Tourism Include?
Adventure tourism includes, but is not limited to, the following types of activities:
- Hiking
- Trail rides (via animal or motorized vehicle)
- Mountain biking
- Fishing charters
- Dog sled tours
- Guided tours
- Boat tours
- Snowshoeing
- Kayak and canoe tours
- Rock climbing
- Zip lines
- Whitewater rafting
- Hunting and more!
Many of these activities are thrill–seeking, making them considered high risk for insurance.
The Benefit of Outdoor Guide Insurance
Tour operators have much to gain from commercial insurance. While you aim to create a fun, memorable, exciting and informative experience for your customers, many things can go wrong.
For example, the right tour operator insurance policy might safeguard your tour business against property damage, cyber liability claims, third-party bodily injury claims, and much more. Without insurance, you would be left to pay for the cost of any damages and/or injuries out-of-pocket, which could lead to financial loss or ruin.
Insurance Types for Outdoor Guides & Tourism Companies
There are a handful of insurance options available for tour guides and outfitters to ensure adequate protection from risks. The following coverage types can be important for protecting tour operators.
Commercial General Liability Insurance
Commercial general liability insurance, also known as slip and fall insurance, can protect your tour company against claims of third-party bodily injury and property damage.
For example, if a guest was injured while on one of your tours or inside your tour office, they could sue you for bodily injury. Luckily, with commercial general liability insurance, your insurer may cover any applicable legal defence costs, medical expenses, and more.
Product Liability Insurance
If your tour business sells products, such as souvenirs or food and beverages, then you should consider adding product liability insurance to your policy. Even if you don’t have a hand in manufacturing these items, you could still be held liable if a customer buys a product from you and it later results in bodily injury or property damage.
Commercial Property Insurance
Commercial property insurance protects your tour business and any business-related contents from property damage due to an insured peril. You get to decide which perils to include in your property coverage policy, though some of the most common are water damage, fire, theft, windstorms, vandalism, etc.
Business Interruption Insurance
Business interruption insurance can protect your tour business from lost income if it is forced to close due to an insured peril. Again, insured perils covered by business interruption insurance vary but can include theft, fire, vandalism, windstorms, water damage, and more.
Commercial Auto Insurance
Commercial auto insurance is important if your tour-operating business uses vehicles for business purposes, such as transporting customers to and from certain locations and/or experiences. Auto insurance coverage may include third-party liability coverage, comprehensive coverage, uninsured automobile coverage, accident benefits coverage, collision coverage, and more.
Umbrella Liability Insurance
Umbrella liability insurance takes effect when regular liability limits are reached, meaning it can protect your tour business against unforeseen or catastrophic events.
Cyber Liability Insurance
Cyber liability insurance is crucial for any tour operator that stores sensitive customer information online (e.g. financial or personal information). This type of coverage can cover the costs associated with a cyber attack, hack, or breach, which could include credit monitoring, client notification, restoration fees, and more.
Liquor Liability Insurance
Liquor liability insurance is important for any tour businesses that host tours where alcohol is served to customers. This insurance type can help cover the cost of a claim brought against your business alleging third-party bodily injury or property damage due to an intoxicated patron.
Marine Liability Insurance
Marine liability insurance is important if your business offers fishing charters, boat tours, kayak, and canoe tours. Marine insurance for hulls and machinery needs to be secured to safeguard against potential risks, ensuring financial protection in the event of accidents, damages, or liabilities arising from activities on the water.
The Cost of Adventure Guide Insurance
There are a variety of factors insurance providers take into consideration when calculating adventure tourism company insurance premiums. Due to this complexity, insurance rates can vary significantly between tour operating businesses.
Some of the factors that affect the cost of insurance can include:
- The size and location of your business operations
- Your tour operating business’ annual and projected gross revenue
- Your insurance claims history
- The tours offered by your tour operating business, and whether they involve alcohol
- The number of employees at your tour operating business
- The coverage, policy limits, and policy deductibles you choose
Make ALIGNED Insurance Your Go-to Brokerage for Outdoor Guide Insurance
Are you ready to purchase outdoor guide insurance for your tour business? Make ALIGNED your choice for outdoor guide insurance, and we promise you won’t regret it.
At ALIGNED, we have a team of trusted brokers who are experts at matching businesses with the right coverage. Simply get in touch, explain your insurance needs, and a friendly insurance broker will find a policy that suits the needs of your tour adventure tourism business.
