No it doesn’t have to be, is the quick answer. Passenger liability is quite a basic form of insurance with some simple questions to get quotations formed. These may include level of turnover for the venture, which tells an insurance company how busy the business is. And then there’s the obvious question about how many passengers would be carried, whether daily or weekly. Sure there are extra questions about Health and Safety and what type of carriages are used, but these are just so the insurer understands the risk they are accepting.
That said passenger liability insurance is only one part of the equation, and owners often want to insure a host of other covers, such as the machinery (Engineering) and the infrastructure (track, buildings, etc), and then perhaps the management liability (Trust Indemnity or Directors & Officers).
It’s worth sitting down and thinking about all the risks that are faced, and what is important to cover. It may be that some of the covers are legal requirements, and others are just sensible to have, and a good broker (AIC) can often go through these, explaining them, and building a bespoke package of cover that suits the venture and its owners.
Is it expensive to insure Live Steam Locomotives? Again it doesn’t have to be, and various insurance quotations can be formed from the most basic required covers, to the complete package. Costs may start at just a few hundred pounds, and it all depends on what you’re trying to insure. And don’t forget, presenting your risk to insurers correctly is very important, as you only get one chance at a good first impression, so it’s worth spending time gathering all the details together – thinking about what makes your venture a good risk. What safety measures are in place to prevent injuries or losses? And only once you have a professional presentation should insurers be approached.
What are the risks? So the obvious ones are injuries to the public or staff, and material damage to equipment and assets, be it from fire or theft. The next most common risk would be legal disputes, which can range from disgruntled neighbours to Health & Safety prosecutions. There are plenty of variations on these claims and some may be difficult to insure, such as landslip, and deterioration to structures, and whilst it’s not impossible to cover these it can become more expensive. You must decide how important or likely an event is needing cover, and then weigh up the costs of buying the insurance for it.
We hope you found this useful, and please get in touch with us at AIC if you want to discuss your needs in more detail.