Hiking Tour Insurance
Getting insurance for your hiking tour business is essential.
Hiking tour businesses need to be protected against claims of things like personal injury and breach of contract claims.
For example, one of your clients could fall and injure themselves on a hike, and later claim that one of your employee’s negligence caused the accident.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Hiking Tour Business
General liability insurance is — generally speaking — one of the most important insurance policies for family counseling practices.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
Several other policies may prove beneficial to your hiking tour business, such as:
- Commercial auto insurance: A commercial auto insurance policy is needed if you have a company vehicle, such as one you drive your clients to hikes in. If you get in an accident, it won’t be covered by your standard auto insurance.
- Business income coverage: This type of insurance provides financial protection in case your hiking tour company’s business is interrupted for a significant period of time by a natural disaster or some other covered event. Expenses such as lost income, relocation costs, and extra expenses incurred during the recovery period are covered.
- Professional liability insurance: This policy offers protection that someone in your company was professionally negligent or failed to provide proper advice or service. In the event of a lawsuit, legal fees and damages will be covered.
After securing the necessary types of insurance, you need to choose what type of company to purchase coverage from. Providers are generally one of two types: traditional or online insurers. Choose a provider that best suits your hiking tour business’s unique needs and circumstances.
Small businesses are usually best served by online insurers due to their added speed, convenience, and affordability. This is because online insurers like Next and Tivly have much lower overhead than traditional insurers due to their digital nature.
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Cost of General Liability Insurance
On average, hiking tours in America spend between $400 - $1,100 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a hiking tour business to other professional industries using the graph below.
Several factors will determine the price of your policy. These include your:
- Location
- Deductible
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
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Common Situations That General Liability Insurance May Cover for a Hiking Tour Business
Example 1: A client experiences a snake bite while on a hike after an instructor fails to adequately communicate the dangers in an area. General liability insurance will likely cover the cost of their medical bills.
Example 2: All of your professional equipment is ruined after a major storm occurs during a hike. General liability insurance will likely help you recover the costs of your equipment.
Example 3: When transporting guests to the trail, your commercial vehicle damages a welcome center structure. General liability insurance will likely help pay to restore the facility to its original condition.
Other Types of Coverage Hiking Tour Companies Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:
Commercial Property Insurance
If you use commercial space to receive hikers before they leave and welcome them when they return, you’ll need commercial business insurance to cover the structure in case of damage. This insurance also covers any equipment or merchandise in the building against natural disaster or theft.
Business Interruption Insurance
If you mainly conduct tours in an area that’s prone to flooding, earthquakes, erosion, or other natural phenomena that may result in canceled tours, business interruption insurance can help you cover your loss while you are unable to operate your business.
Workers' Compensation Insurance
No matter how experienced your trail guides are, they may injure themselves when they’re out for a hike. Whether it’s a sprained ankle or a broken leg, workers’ compensation will cover the cost of medical expenses for on-the-job injury.
Professional Liability Insurance
Professional liability insurance protects your business and employees in the event that someone makes a mistake on the job. For example, if a trail guide misinforms a client regarding which plants are safe to touch and this results in someone getting poison oak, professional liability insurance may cover any expenses that stem from negligence or employee error.
Commercial Umbrella Liability Insurance
Commercial umbrella insurance covers the costs of major liability claims. If a hiker has a fatal accident under your care, this insurance will take care of any legal costs that stem from the death. If the business has to take drastic measures to restore their reputation, commercial umbrella insurance will also cover the costs associated with positive PR for the company.
Commercial Auto Insurance
If you use a commercial vehicle to transport hikers to and from different trails, you’ll need commercial auto insurance to cover both the vehicle and any resulting injuries your clients may sustain.
Data-Breach Insurance
If your clients book their hiking tours online, data-breach insurance can help cover costs in case your website is hacked. This insurance is highly recommended for businesses that mainly serve tourists, as tourists are more likely to set up their tours prior to arriving in the general area.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your hiking tour:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
Hiking Tour Business Insurance FAQ
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
Yes. You need to protect your hiking tour business from potential liability before taking on any clients. Plus, there may be a legal requirement in your state to purchase at least some type of business insurance (e.g., workers’ compensation) before starting up.
Not necessarily. Certain exceptions may be written directly into your hiking tour company insurance policy, and some perils may be entirely uninsurable.
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.