Adventure Tourism is a rapidly growing industry with today’s traveller demanding a more authentic and thrilling experience. They are willing to extend the boundaries of their comfort zones be it physically, mentally or culturally. With well over 120 different activities on offer, over 2000 operators involved and 44 associations currently representing this sector, it most certainly requires some specialist attention.
We identified the need for a specialist product some time ago and have work closely with the industry and insurers to develop a product that is flexible enough to cater for the broad spectrum of activities currently represented. This niche market cannot fit into a standard insurance policy, so it is with great pride that we bring you a NEW adventure product backed by our first-class claims service, expert advice and SATIB24 Crisis Call.
Here are a few frequently asked questions around the adventure industry and insurance product:
1 – How much cover does the average adventure operator need?
Determining the correct limit of Indemnity to take is largely dependent on their target market. If the Insured intends on targeting high net worth individuals/ Internationals we recommend they don’t take anything less than R20 million, or certainly as much as our clients can afford.
Example: Imagine a 40-something, married South African business executive earning R1.5m a year, is the sole bread winner and has three dependents. He or she sustains a disabling injury to the spine and is unable to perform the same job as done before the incident. After a lengthy (and costly) legal battle, the court rules you negligent and liable to pay for damages. A possible award to the plaintiff could easily be in the region of R20 million in this example, if one considers the costs of on-going medical costs, loss of income and even alterations to the family home to make it wheel-chair friendly. Now consider the event of multiple claimants, or foreign guests whose income and future medical costs need to be calculated in their currency of origin.
2 – How much would one be expecting to pay per month? Estimate.
Premium is largely dependent on turnover and the activities provided. Based on this class of business we would estimate the premium to be anywhere between R500 & R1000 per month for R5 million cover.
3 – How does adventure liability differ from standard liability cover?
The cover incorporates a wider variety of activities often excluded from standard covers. The insurers we use are leaders in this market and understand the risks involved so will readily hold cover for operators in this sector and entertain legitimate claims.
If you are an adventure operator, please could you complete this quick survey.
Link: Adventure Operator Survey
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