Coast tour operators fearful of deflating insurance hikes as premiums renewed
GOLD Coast adventure tourism operators fear soaring insurance premiums as they battle to survive the COVID-19 downturn.
Public liability insurance, covering injuries to a customer or damage to property, is crucial for protection from being sued for negligence.
Adventure tourism operators already pay higher premiums than others in the leisure sector because of the inherent risk in their operations.
But some fear hefty increases when premiums are recalculated for the next year from July 1.
Paramount Adventure Centre’s David Payne, said insurance was already a “massive cost” for the Burleigh Heads indoor rock climbing centre.
“It’s all up for renewal next month and there are definitely COVID-19 restrictions,” he said.
“We can still get public liability insurance, but we’re concerned when the renewal occurs how the premium will be affected.
“It’s already a massive cost, so we hope that doesn’t get affected too heavily.”
Go Ballooning owner Murto ray Blyth said he had paid public liability insurance until September.
But it was based on 11,000 passengers for the 12 months
September and not the 3000 he has projected he would end up with.
“I hit them up for a refund saying ‘Guys we are not going to fly that many people so we have to do an adjustment,” he said. “They gave some adjustment and it is useless.”
Mr Blyth said the issue with hot air ballooning is there is just one insurer – Lloyds in London. I’m not sure if our insurance will go up or down come September,” he said.
Insurance Council of Australia spokesman Campbell Fuller said there was a global tightening of public liability cover.