Ecotour Companies Need Business Insurance

Business insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for an ecotour company.

This article will discuss the primary insurance coverage for ecotour enterprises, general liability insurance, as well as additional policies that are appropriate for this industry.

Ecotour Companies Need General Liability Insurance

Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.

General liability insurance covers the following risks:

Physical harm

Damage to property

Medical expenses

Legal defence and decision

Personal and commercial harm

While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.

GENERAL LIABILITY INSURANCE MAY COVER COMMON SITUATIONS FOR AN ECOTOUR BUSINESS

Example 1: While loading tour client baggage onto a van, an employee drops a bag, shattering a customer’s costly photographic equipment. The customer’s damaged property would be replaced under general liability insurance.

Example 2: While preparing for the next tour, you inadvertently knock a guest to the ground as she turns a corner in your establishment. She falls and fractures her tailbone, so she decides to sue. Your legal defence expenses and any needed payment would be covered by general liability insurance.

Example 3: The owner of another ecotour firm sues your company, alleging you copied his corporate logo. You want to employ an attorney to safeguard your interests even when you disagree with the allegation. Your legal defence expenses and any needed payment would be covered by general liability insurance.

Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.

General Liability Insurance Cost

Ecotour companies in the United States typically pay between $350 and $700 per year for $1 million in general liability insurance.

The cost of your coverage will be determined by a number of variables. Among them are your:

Location

Deductible

Employees’ number

Per-occurrence restriction

The overall aggregate limit

You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.

Other Types of Coverage Ecotour Companies Require

While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all ecotour companies should have are as follows:

Insurance for Workers’ Compensation

Workers’ compensation insurance is required in most states for both part-time and full-time employees. This coverage covers your workers if they are hurt at work or get sick as a result of a workplace accident. It covers not just an employee’s medical expenditures and missed pay if they need time off to recuperate, but also any disability or death benefits resulting from a work-related accident.

Insurance for Commercial Vehicles

In the case of an accident, any car you use mainly for work needs commercial auto insurance to cover the vehicle, driver, and others on the road. Choose a policy that not only covers accident-related vehicle repair expenses and medical care for anybody harmed, but also provides enough coverage for any business goods you transport in your tour vans, buses, or other vehicles.

Coverage Options for Some Ecotour Companies

In addition to the insurance listed above, your ecotour company may need other forms of coverage based on particular elements of your activities. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.

Insurance for Commercial Property

You made a significant investment in the equipment and materials required to start your ecotour company. Commercial property insurance would cover the expense of repairing or replacing your business-related property in the case of a fire, theft, or natural catastrophe. This covers structural damage to your premises as well as the business items stored inside it.

Umbrella Insurance for Businesses

While most claims are covered by your general liability insurance policy, certain incidents or lawsuits may be so severe that they threaten to deplete the limits of your main coverage. Commercial umbrella insurance protects you from having to pay for legal expenses and awarded damages that exceed the limits of your main policy out of pocket.

Additional Security Measures for Your Company

Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.

With this in mind, here are a few steps you can take to better secure your company:

Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)

To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)

Keep your company licences up to date.

Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.

If your company is an LLC, you should check into LLC insurance.