Tour Operator’s Liability Insurance
The insurance is mandatory for any tour operator which is licensed pursuant to the procedure of the tour operator’s activity legislation.
Scope of coverage – The liability of the tour operator for property damage caused to the client during the policy period due to the tour operator’s failure to pay its contract partners and suppliers, including in case of the tour operator’s insolvency and bankruptcy.
The insurance protection includes:
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Recovery of the amounts paid by the client under a contract for organised group or individual travel with a total price prior to the travel;
- Payment of the difference between the amount paid by the client under the contract and the amount of the services actually provided in the cases when only part of the agreed upon services are provided during the travel;
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Costs related to the return of the client to the starting point of the travel.
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The scope of the insurance protection provided by the insurer is determined not only by the risks covered but also by the amount the insurer will pay if an insured event occurs. This is the amount specified by the insured for which the insured wishes to sign the policy and it is reflected in the policy as a liability limit.
Minimum mandatory level: The ordinance on the terms and procedure for signing an obligatory insurance policy covering the tour operator’s liability sets obligatory liability limits which correspond to the tour operator’s declared turnover for the preceding year and/or business plan for the current year.
Voluntary level: The insured can chose a higher liability limit than the minimum mandatory level for liability limits.