excursion_insurance_deficiencyAs an excursion or tour operator, having a fun and safe tour is the first thing that you think of every day. However, if you are looking to grow your business and begin to work with cruise lines that can promote your tours to their passengers, excursion insurance is a necessity. If a tour operator's excursion insurance policy does not meet certain requirements, cruise lines might refuse to work with that tour operator and refuse to promote their excursions to passengers. As a tour operator, it's important that you're aware of any deficiencies in your excursion insurance policy so that you can take advantage of the significant increase in business that inclusion in a cruise line's itinerary or list of suggested onshore activities can bring.Among the potential expenses that excursion insurance might cover depending on the exact details of a given policy are property damage and bodily injuries, damages to non-motorized watercraft, damages to a tour operator's automobiles, and damage to a tour operators motorized watercraft. Each cruise line typically has its own requirements in terms of what it requires from a tour operator in order to promote that tour operator to its passengers. Two of the most significant factors in determining if an exclusion policy is deficient don't typically involve the exact coverage options of a certain policy, but rather the geographical jurisdiction or the credit rating of the excursion insurance provider offering that policy.

Worldwide Jurisdiction

The fact that passengers on a cruise can come from anywhere in the world often complicates legal disputes that might arise from an incident that occurs internationally during a trip overseas. Because each country has its own rules, regulations, and tax liability laws that might affect an excursion insurance claim, having a policy with worldwide jurisdiction is a very valuable asset to a tour operator. If your excursion insurance is deemed deficient, it could be because your insurance provider does not have worldwide jurisdiction on your policy.

Credit Rating

A high credit rating from an excursion insurance provider indicates an ability to meet financial responsibilities by sufficiently handling all claims. If your excursion insurance comes from a provider that does not hold an A- credit rating or higher according to A.M. Best, a cruise line might have concerns that expenses will not be adequately covered for its passengers in the event of a claim. When you sign on to an excursion insurance policy, you should be aware of the credit rating of the insurance provider with whom you are doing business. This is an important factor for cruise lines when they are determining whether or not your insurance policy is sufficient.

When considering different excursion insurance policies, geographical jurisdiction and credit rating are two of the first factors you should look into. These are the most common causes of excursion insurance deficiency. Obviously, it's best to confront the issue of an excursion insurance deficiency before it arises, so do your research on your excursion insurance provider to make sure that it will both be able to handle any claims that arise and be adequate in the eyes of cruise operators that are important to bringing in large volumes of business.

Get a complimentary insurance review and learn if your policy is deficient.

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Topics: Why Excursion Insurance is Needed, Excursion Insurance FAQ

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