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Tourism Business Insurance

Posted on: 5th August 2022

With the staycation boom set to continue, our Commercial Director Chris Clement, explains how H&H Insurance Brokers supports businesses in the tourism sector.

The tourism sector is one of the UK’s most important industries, supporting hundreds of thousands of businesses and jobs.  Following the turmoil caused by the pandemic, the industry is recovering well, thanks to a boost in staycations as more people choose to holiday at home and the reopening of the UK’s borders to overseas travellers.  According to data from the World Travel & Tourism Council (WTTC), the UK’s travel and tourism sector’s contribution to the UK economy is expected to rise to £192 billion by the end of 2022, just 19 per cent below pre-pandemic levels. 

The global tourism body also predicts a net gain in jobs for the sector, with a rise of 1.7 per cent on pre-pandemic levels, resulting in some 4.3 million people being employed within travel and tourism by the end of the year; 70,000 more than in 2019.  All this is good news for an industry which has suffered its fair share of knocks over the past two years.

We work with businesses across the tourism and hospitality sector, providing support for family-run hotels, self-catering holiday lets, campsites, caravan sites, restaurants, cafes and tourism experiences.  Every business is unique which is why we work closely with our clients to ensure they are covered by an insurance policy tailored to meet their individual requirements.

One of the most important factors to consider when insuring a tourism business is public liability insurance. This is an essential requirement for any business which comes into contact with the public because it provides protection against any claims made by members of the public for incidents that occur in connection with your business activities, which could include personal injuries, loss of or damage to property and death.

For anyone with employees or unpaid volunteers including friends working under your instruction, employers’ liability insurance is a legal requirement which must be included on your policy to protect both your team and your business.  Public liability and employers’ liability both come as standard when insuring a business with HHIB.

Many farming enterprises have embarked on tourism ventures in recent years to boost revenues, particularly with the reduction in direct payment subsidies which are being phased out by the Government in their current form.

The most recent figures from the Department of Environment, Food and Rural Affairs revealed that of the £168 million in total income for farmers in North West England, £58 million or 35 per cent was from diversified business activities.

If you have plans to transform an old barn into holiday accommodation or create a campsite on your land, then it’s worth having a chat with your HHIB account executive who will be able to advise you on how best to insure the venture. Any new tourism enterprise will be in addition to your existing farm policy and needs to be insured as such.

Our years of experience working with businesses have given us an excellent insight into what to do (and what not to do) when planning a new tourism venture.
For example, it’s vital that visitors to your property are kept as safe as possible and any potential risks are mitigated.  Putting in place clear signage which states any areas which are off-limits will help ensure visitors do not put themselves at risk by coming into contact with working machinery, potentially dangerous livestock, or chemicals.  A hay barn piled high with bales may look like an enticing adventure playground to a visiting child, although it is fraught with potential dangers of falls and injury.

You will also need to make sure that all necessary health and safety assessments have been carried out to your property, and that fire and electrical regulations have been adhered to.
During our regular visits to your business, we can assist you in assessing any potential risks and help you find ways to mitigate them.

You also need to consider what happens if the worst happens and you are unable to operate your business for a period of time due to circumstances outside of your control such as a fire, a flood or storm damage.

If your rented holiday accommodation or campsite is out of action then not only will you lose the revenue stream but you will also need to pay for remedial work to get it back on course.

Having the right insurance in place will give you the peace of mind that your business is protected against these eventualities.
It’s our job to ensure that you have the right insurance at the right price in place for your business, and we used our experience and experience to make sure we deliver for our clients by offering a first-class, personal service.

If you’d like to chat about insurance for your tourism business, give me a call on 07527908513.