Starting a new tourism business? It’s time to talk about public liability insurance

Tourists who visit Britain will spend an estimated £27 billion in 2018, Visit Britain estimates.

The falls in the value of the pound compared to the Euro and the US dollar made 2017 a record year for foreign tourism, with 39.9 million visits from overseas.

Couple that with evidence that many Britons are having staycations this year, because our money goes further here than in Europe, and it’s no surprise that tourist businesses are being established to ride this economic wave.

From hotels, bed and breakfasts, and hostels to camping sites, glamping sites, and retreats, many tourist businesses are springing up across the UK.

One thing all of them will need is the correct level of public liability insurance.

Here’s our quick guide for those setting up a tourist business for the first time…

What is public liability insurance?

If your business comes into contact with the public, you will need public liability insurance. If you’re found to have injured someone or damaged their property, this insurance will cover you.

It typically covers compensation, medical bills, loss of income, business disruption, and repairs for the injured party.

Whether your customers come to you every day, or if someone such as a sales person visits you, you’re covered under this type of insurance.

You have a duty of care to ensure that appropriate steps are taken to ensure the safety of people at your site.

Public liability insurance generally covers invitees, in other words people you invite onto your property, licensees when someone not specifically invited comes into your site, and trespassers, people who come onto your site uninvited.

Who needs it?

All tourist attractions, including theme parks, arcades, climbing centres, escape rooms, and zoos, need this type of insurance.

Any business which deals with the public on a regular basis in this way needs to ensure it is covered in the case of an accident or complaint against it.

Common problems might include slips or falls or accidents involving your vehicles.

How much cover should I have?

This depends on the size of your business, the type of activities you carry out, and whether you are involved in providing services to the public sector.

For many public-sector contracts, having public liability insurance is a prerequisite.

Some specify the amount of cover you need, which can be as high as £10 million.

It is also required by some trade membership associations and industry regulators.

Cover generally starts at £1 million, though most businesses with regular contact with the public will start their cover at £2 million.

Talk to an experienced, independent broker, such as Severn Bay, and give them as much detail as possible about your business so that they can find the best cover for you.

Need advice? Our Severn Bay team of small business insurance specialists is here to guide you on the right insurance products to ensure you’re protected. For more information please contact us on 029 2047 0375.