Australia is home to around 103,000 tourism businesses. If yours is among them, you’ll know how dynamic and unpredictable the industry can be.
Having the right insurance cover can make it easier to weather the storms and bounce back from challenges.
We’ll outline the cover that can help protect you from some of the most common tourism business risks.
Workplace injuries and public liability insurance for tourism operators
If customers or staff are injured while on your premises or participating in an event or tour, they may be entitled to seek compensation.
Should that occur, public liability and workers compensation insurance can help you cover the cost.
As always, prevention is better than cure, Broker Technical Manager Michael White says.
“Appropriate workplace health, safety and training procedures can reduce the likelihood of a customer or employee coming to grief,” White says.
Insurance for property damage for Australian tourism businesses
Depending on the nature of your business, the value of your equipment may run to six or seven figures.
Property insurance can help you replace it if it is lost, stolen or damaged, whether that’s accidentally, maliciously or in an extreme weather event.
If you own a premises or several, you may need cover for them too. Your building insurance policy can help defray the expense of relocating your operations and repairing the damage, should disaster strike.
Business interruption insurance for tourism businesses
From theft to natural disasters, there are numerous incidents and events that could put your tourism business out of action, for a short or a long time.
That’s why it often pays to have business interruption cover, a form of insurance designed to help protect your cash flow if your business is unable to trade.
“Having this protection can make it easier for your enterprise to bounce back after being out of action for a period of time,” White says.
Cyber insurance cover for tourism businesses
The risk posed by cybercrime is real and rising, and Australian business owners need to be on high alert. The Australian Cyber Security Centre, Australia’s cyber watchdog, received around 94,000 cybercrime reports in FY2023, an increase of 14 per cent on the previous year.
Attacks aren’t just disruptive: they can also be very expensive. The average cost per report last year was $46,000 for small businesses, and $97,200 for medium businesses.
Implementing stringent cyber hygiene practices can make your tourism business a smaller target for hackers and cyber criminals.
It may also prevent you falling foul of the Office of the Australian Information Commissioner which has the power to impose large fines on businesses that don’t take sufficient steps to protect the customer data they collect and store.
And if you’re unfortunate enough to experience an attack, cyber insurance can help cover your losses and the cost of remediation.
Cover to protect your tourism business’ growth
If it’s been a while since you reviewed your business insurance, now is a great time to do so. To discuss all your tourism cover needs, contact your broker or adviser today.
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This general information does not take into account your specific objectives, financial situation or needs. It is also not financial advice, nor complete, so please discuss the full details with your insurance broker or adviser as to whether these types of insurance are appropriate for you. Deductibles, exclusions and limits apply. These insurances are issued by various insurers and can differ.
Disclaimer: The information contained in this article is general in nature and does not take into account your personal objectives, financial situation or needs. Please consider whether the information is appropriate to your circumstance before acting on it and, where appropriate, seek professional advice.