What insurances do I need?
The type of insurance cover will vary from business to business, as will the level of cover you require and your risk exposure. A thorough risk assessment of your venture, undertaken as part of the start-up planning, will help to identify what cover you may need and it could even result in obtaining a cheaper premium. Some industry associations offer bulk buying insurance schemes for their members, which are generally cheaper than individual purchase.
A knowledgeable insurance broker is a valuable ally to have by your side when starting out. Establish a good working relationship and, over time, they will get to know your business needs and provide years of free advice.
The basic insurances required by most tourism businesses are:
Fire and theft
Public liability
Professional indemnity
Product liability (if applicable)
+ specialist activities, eg marine
Some businesses heavily reliant on one or two people to operate may also consider taking-out key person insurance.
Click here to obtain information about the different types of insurances or the VECCI insurance information page
It is important to identify all the things that could adversely affect the performance of your business, or those things that may result in dangerous situations for staff and clients. A risk assessment is a systematic process by which you determine the safest way to operate your business and, very importantly, avoid liability. The following three steps are the basic process:
- Identify actual and potential hazards in your premises and/ or operations
- Determine the likelihood of them occurring and the potential consequences
- Identify and implement procedures that avoid, rectify or minimise them happening. (ie develop a Risk Management Plan)
Many operators only see risk in terms of physical assets, such as steps, railings, paths etc. However, your risk assessment needs to also embrace the very real risks to the operation of your business, including:
- Legal risks: through lack of compliance, negligence and breach of common law
- Financial risks: including fraud, taxation, insurance issues, lack of compliance
- Reputation: damage to your image and reputation
- Operational risks: bush fire, water shortage, flood etc