AusLeisure

With carnival ride and trampoline arena operators among industry sectors having been seriously impacted by sharply rising premiums and, in some cases, an inability to secure insurance cover, a new report suggests that adventure tourism operations are ceasing activity after being refused to provide public liability insurance

As reported by ABC Mid West/Wheatbelt long-running adventure tourism businesses have had to cease operations with brokers and industry representatives saying such coverage for the sector is becoming "financially unviable" for global insurance markets.

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

As reported by the ABC, despite contacting 20 underwriters, Allport said his broker had failed to find one willing to provide public liability insurance.

Allport explained his fears that “this could kill adventure tourism.”

Similarly, 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, noting “we can't operate this business (and) we can't sell (it).”

Fellow Kalbarri quad bike tour operator Jenny McClintock, from Wagoe Beach Quad Bike Tours, is also facing closure when her policy comes up for renewal in August.

McClintock told the ABC “if we can't get public liability, adventure tourism will die within months.”

Peter Kalbfell, who owns a jet boating company in the south-west holiday town of Dunsborough, noted “if we can't source public liability insurance we cannot operate in the marine park and we'll have to shut down.

"It feels terrible … the (Western Australian) Government is trying to promote 'Adventure Awaits' - well, there won't be any adventure left if the State or Federal Governments don't step in and assist."

Explaining the difficulties brokers face, 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.

Ross advised “it's been a heavy couple of years for Lloyd's of London.

"They've been really rescaling their books, especially in in regards to liability risks.

"They're not charities, they are there to make a profit and statistically this is how they do it.

"They can wear losses for a couple of years but after a while they have to toughen up and that's what we're seeing."

William Legge, General Manager of peak body Underwriting Agencies Council, said in many instances it was no longer financially viable to provide public liability cover.

Campbell Fuller, the Insurance Council of Australia's Head of Communication, said there was a global tightening of the market for such insurance types, although he said cover might be available from "specialist brokers" overseas.

Western Australian Nationals Tourism Spokesman Vince Catania MLA warned that the closure of adventure tourism operations would have a big impact on tourism and tourist towns.

Catania stated “if you can't get insurance you can't operate.

"If you can't operate there is no tourism product that we can sell to those visitors who want to come up and jump on a quad bike, who want to get on a boat, who want to be able to do adventure tours, whether it's on the coast or whether it's inland."

Operators are now calling on state and Federal governments to step in and underwrite their businesses, with McClintock advising “we need some help and it's pretty urgent.

"Because the longer we go on, more businesses will close down and they won't come back."

Western Australian Tourism Minister Paul Papalia has asked the small business commissioner to provide advice about how the governments might be able to help, commenting "I would like to try and see what we can do to ensure people can get insurance.

"But it's not normally a Government activity."

Federal Assistant Treasurer Michael Sukkar said treasury was "monitoring the current insurance market situation".

He concluded “while coverage is still readily available in Australia, public liability insurance market is tightening as fewer insurers are underwriting this product and have placed a greater focus on owners' risk management and maintenance.

"Treasury advice indicates insurance markets are becoming being more selective in the risks they will underwrite, and are imposing stricter terms and conditions on policyholders.

"This is a worldwide phenomenon and is a reflection of the insurer and underwriter response to the poor financial performance of this type of insurance in recent years."

Images: Jet Adventures, in Dunsborough, is among a growing group of adventure tourism operators that have had to close down. Courtesy of Jet Adventures.

Related Articles

10th June 2020 - Funding committed for replacement beach enclosure in Albany

2nd April 2020 - Golf course greenkeepers fear shutdown will result in multi-billion dollar damage to turf infrastructure

17th March 2020 - New national outdoor standards will support Queensland’s adventure tourism sector

4th February 2020 - Worksafe Queensland prosecution results in $50,000 fine following inflatable amusement ride injury

17th December 2019 - F45 Training takes legal action against Body Fit Training over alleged patent infringement

7th December 2019 - CrossFit wins US$4 million in damages in ‘false and fabricated data’ court case

9th September 2019 - New International Standards aim to reduce negative impacts of recreational diving

4th September 2019 - Rider suffers suspected spinal injury at Royal Adelaide Show carnival

28th June 2019 - Ardent Leisure facing potential $80 million liability in wake of Dreamworld inquest

24th May 2019 - Geoffrey Rush to receive massive $2.9 million damages in Daily Telegraph defamation case

26th March 2019 - Ballarat swimming academy fined $150,000 after student’s life changing diving injury

19th November 2018 - New Australian standard to help reduce risks at trampoline parks

30th October 2018 - Standards Australia releases new international guidance on risk management

15th September 2018 - Commercial trampoline centre operators struggle to secure insurance

14th August 2018 - Swimmer suffers eye damage after using recalled Zoggs goggles cleaner

25th June 2018 - Inquest evidence causing ‘irretrievable’ damage to Dreamworld’s reputation

17th November 2016 - Australia and New Zealand ranked among top adventure tourism destinations

18th August 2016 - Swimming with humpbacks begins at Ningaloo Reef

25th May 2016 - Sports injury hospitalisations higher in regional Australia

19th May 2015 - Perisher Blue escapes liability for skier’s injury but needs a new disclaimer

30th December 2014 - Queensland entrepreneur launches new adventure tourism insurance company

11th April 2014 - Concerns over fitness clubs failing to comply with injury minimisation guidance

10th April 2012 - Better exercise pre-screening to ease liability fears

4th May 2011 - Amusement Ride Static and Transit Insurance

10th March 2010 - Sportscover launches sport and leisure travel insurance

---

Asking a small favour
We hope that you value the news that we publish so while you're here can we ask for your support?

The news we publish at www.ausleisure.com.au is independent, credible (we hope) and free for you to access, with no pay walls and no annoying pop-up ads.

However, as an independent publisher, can we ask for you to support us by subscribing to the printed Australasian Leisure Management magazine - if you don't already do so.

Published bi-monthly since 1997, the printed Australasian Leisure Management differs from this website in that it publishes longer, in-depth and analytical features covering aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues management.

Subscriptions cost just $90 a year.

Click here to subscribe.