Tour buses are a popular mode of transportation for tourists and travelers, providing a comfortable and convenient way to explore new scenes. However, operating a tour bus company comes with its inherent risks. From accidents to cancellations, there are a variety of potential claims that can have significant financial and reputational consequences. This blog will explore some of the most common claims associated with tour buses and how you can protect your company from them.
Risks of Operating Tour Buses
Tour bus companies provide a valuable and luxurious service for people nationwide, but hold a large responsibility for keeping passengers safe. Companies that operate in this industry face a number of risks that can result in claims. Here are some of the most common risks of operating tour buses:
- Accidents: Tour buses are large, heavy vehicles that can be difficult to maneuver in crowded or unfamiliar areas. Accidents involving tour buses can result in serious injuries and property damage.
- Breakdowns: Like any vehicle, tour buses can experience mechanical issues that require repairs. A breakdown can result in delays, cancellations, and unsatisfied customers.
- Cancellations: Tour bus companies may have to cancel trips due to inclement weather, unexpected closures, or other circumstances beyond their control. Customers may seek refunds or compensation for the inconvenience.
Common Claims Associated With Tour Buses
There are hundreds of different claims that companies in the passenger transportation industry can face. When it comes to tour buses, bodily injury claims are one of the most common. Bodily injury claims can be made if a passenger or third party is injured in an accident involving a tour bus. These claims can be costly, as they may include medical expenses, lost wages, and pain.
Another common claim tour bus companies see is property damage claims. If a tour bus causes damage to another vehicle or building the owner of the damaged property may sue and seek compensation.
Breach of contract claims is also prevalent in the industry. Customers may sue a tour bus company if they feel that the company did not fulfill its obligations under the contract. For example, such as canceling a trip without adequate notice or faulting to provide promised amenities.
Essential Insurance Coverage for Tour Bus Companies
Tour bus companies typically carry several types of insurance to protect themselves from the risks associated with their operations. Here are some of the essential coverages all tour bus companies need:
- Liability insurance: This insurance covers bodily injury and property damage claims against the tour bus company. It can also help cover legal fees and settlements.
- Physical damage insurance: Physical damage insurance covers damage to the tour bus itself, such as from an accident or vandalism.
- Workers’ compensation insurance: Workers’ compensation insurance is important to have for any employee who gets injured or becomes ill on the job.
No matter how cautious you are or how skilled your drivers are, accidents are sometimes uncontrollable. The right insurance coverage will financially protect your company in the case of an accident.
Mitigate Risk With KF&B Insurance
Risk is inevitable in the passenger transportation industry. However, there are many ways companies can mitigate risk to help protect their company. The first step is to purchase the right insurance coverage for your specific company. At KF&B Insurance, we are experts at handling and exploring transportation insurance. We can help protect your business operations no matter what your needs are. For more information on our services, please contact us today.