A number of tour operators have recently attempted to renew their general liability insurance only to find that their current carrier won’t renew them or that their rates are skyrocketing, sometimes by as much as 700 percent!
OMCA has reached out to the insurance industry, both to people in the industry and to the Insurance Bureau of Canada to get an explanation, and the best answer seems to be that the insurance market is tightening, and all companies are reviewing their rates vs the liabilities. In the case of tour operators, particularly those responsible for school trips/children, there is a view that the current rates don’t reflect the very real risk of a multi-million-dollar suit and therefore the insurance companies have reassessed this product and either dropped it or substantially increased rates.
The increase in liability rates is not limited to tour operators, all liability rates are going up to one extent or another, a sign of our increasingly litigious society and the fact that people sue for anything these days.
Members are advised that they should check with their brokers asap, particularly if their renewal is coming up. They may find that they need to change insurers or plan for a large increase in rates that will impact on their pricing going forward.
If you have any questions please contact OMCA at 416 229-6622.