Adventure tourism operators shutting down amid insurance refusals

Adventure tourism operators shutting down amid insurance refusals

Brokers say such coverage is becoming "financially unviable"

Posted on 18.06.2020

Unable to access insurance, several long-running adventure tourism businesses have shut up shop and fear their sector is in jeopardy.

John Allport has run Tasmania’s Huon River Jet Boats for 30 years, but says he can no longer operate after his insurance policy came up for renewal.

Despite contacting 20 underwriters, Mr Allport said his broker had failed to find one willing to provide public liability insurance.

“This could kill adventure tourism,” he said. “It’s as simple as that.”

Kalbarri Quadbike Safaris has operated for 11 years in Western Australia’s Midwest, but has now closed after its broker was unable to secure insurance.

Owner Martin Rodger predicted more tourism operators would be forced to close their doors as they came to renew their policies.

“We can’t operate this business, we can’t sell this business,” he said.

“We can’t do anything with this business.”

Excerpt …

Providers ‘toughening up’

JMD Ross Insurance Brokers tourism account director Jonathan Ross said there was a more risk-averse global insurance market that stemmed back to major players such Lloyd’s of London.

“It’s been a heavy couple of years for Lloyd’s of London,” he said. “They’ve been really rescaling their books, especially in in regards to liability risks.

Key points:

  • Adventure tourism operations are shutting down after insurers refuse to provide public liability insurance
  • Brokers and industry representatives say such coverage is becoming “financially unviable” for insurers around the world
  • The Insurance Council says “specialist brokers” overseas may be able to help, but operators are calling for government assistance

Source
Samille Mitchell and Jacqueline Lynch
ABC News

 

 

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