White Island Case: What It Means for Adventure Tourism

The changes above have raised the ire of the Tourism Export Council of New Zealand. It’s concerned whether smaller operators have the resources to comply with the new obligations. The council fears the laws could force some businesses to shutter.

Meanwhile, Australian operators are also likely to face tighter safety regulations and oversight, more rigorous risk assessments and increased pressure to communicate to passengers about potential dangers. There is also a risk of heftier payouts due to accidents. Insurers are also reassessing exclusion clauses related to natural disasters.

Another issue is that would-be customers may be thinking twice before booking high-thrill travel activities. They may also want more detailed safety information to help them decide.

How it Affects Liability Insurance

The regulations bring in increased accountability, so it follows that adventure tourism operators may face higher insurance premiums across the globe.

Insurers are re-evaluating the risks associated with covering these businesses. The higher safety requirements and potential for more liability due to an incident are key factors.

As an adventure tourism business, review your current insurance policies now. As your broker or adviser, we can help assess what you need to do to be compliant.

Communicating Risks to Customers

We would like to emphasise a crucial aspect of the new regulations: clearly communicating risks to your customers. That means informing participants of the potential dangers from booking to the actual activity, that is, every stage.

As for liability waivers and disclaimers, they’re likely to become more comprehensive. Invest in developing finer grained risk disclosures so your customers are fully aware of the risks they face.

Due Diligence and Regulatory Oversight

n New Zealand, regulatory bodies such as WorkSafe are playing a more prominent role in ensuring compliance with the new regulations.

Directors of tourism businesses are legally obliged to exercise due diligence in managing health and safety risks. Significant legal repercussions could result if your (Kiwi) SME fails to do so. Therefore, ensure you’re up to date with the latest requirements so your practices meet the new standards.

While these changes are specific to New Zealand, we believe they serve as a model for other countries, including Australia, to review and potentially update their own adventure tourism regulations.

Practical Steps for Businesses

For adventure tourism operators, these are several practical steps to take:

• Conduct thorough risk assessments to identify and manage potential hazards
• Consider, too, the risk multiplier effect, which is how different risks interact with amplify each other
• Regularly review and update your health and safety practices
•  Review and possibly upgrade your insurance policies to match the new legal requirements.
• Boost communication strategies so your customers are fully informed about the risks they may face in their activities with your business, and
• Invest in legal professionals and us, as your broker or adviser, for advice and to ensure you’re compliant, in particular well set up for future changes.

By following these steps, businesses can better protect themselves from legal and financial risks, while also providing a safer experience for their customers.

Where to now?

In light of the White Island judgement, adventure tourism operators should prioritise safety, enhance communication, and ensure comprehensive insurance coverage, businesses. Tick those boxes so that your business can manage these challenges and continue to thrive in a safer, more accountable industy.

Article Supplied by OneAffiniti