6 Things you must know about Passenger Liability Insurance

1.  What is Passenger Liability Insurance?

Passenger liability cover is provided to protect the owners and drivers of the vehicle for any legal liability to their passengers whilst traveling in the insured vehicle.

This provides cover against any claims that may arise while a client is in the motor vehicle, whether moving or stationary. This includes the embarking and disembarking of the vehicle.

Please Note: Many people confuse this with Public Liability, which only takes effect when the client is outside the vehicle. Should an operator/guide transport people to any location such as accommodation, places of interest, etc, Passenger Liability is needed.

The pre-requisite here, is that the driver needs to be correctly licensed according to the regulations of the province in which they drive.

2.  Who needs Passenger Liability Insurance?

If you are transporting tourists, students, commuters (including fair paying passengers), you have a shuttle service, you provide game viewing and so forth, you need this cover.

Transportation of passengers by:

Land: Shuttle, Transfer and Coach vehicles

Sea: Yacht, Ski-boat, Houseboat, Canoe, Rafting

Air: Fixed wing, Rotor wing, Hot Air Balloons 

Tour Operators, Tour Brokers, Tourist Guides 

Corporate Transport Operators 

Hire of Vehicle with Driver – Tourism 

Scholar Transport

3.  Why should you take out Passenger Liability Insurance?

Without liability cover, organizations are fully exposed to the risk of liability claims, which not only threatens their financial survival, their employees’ jobs and the claimant’s chances of being fully compensated, but also impacts negatively on the general tourism industry and the country at large as a tourist destination. 

Here one must also consider that even if the action against the organization is successfully defended in court of law, the legal fees incurred over the often lengthy process of defending the case can often exceed the amount of the initial action.

4.  How much does Passenger Liability Insurance cost?

We have a large book of clients with many different insurance companies, so we will be able to find the most beneficial policy with the cheapest premiums for your business.

5.  Typical claims incurred on Passenger Liability Insurance

Common law claim for damages by someone who is injured or suffers some form of quantifiable financial loss while in the insured’s care. 

Legal liability arising from accident or other incidents which might occur, for example, during guided tours, safaris, transportation where you have been deemed to have been negligent. 

Take Note: Negligence is simply doing something without a reasonable amount of care, or failing to have done something without a reasonable amount of care, or failing to have done something that might reasonable have been done to prevent the incident from having occurred in the first place.

6.  What other insurance should be considered along with Passenger Liability Insurance?

Vehicle Insurance

Personal Accident Insurance

Public Liability Insurance

Events Liability Insurance

Travel Insurance