Coronavirus Gold Coast: Adventure tourism operators struggling to survive during COVID-19 fear another hit with insurance hikes

Gold Coast adventure tourism operators battling to survive the COVID-19 downturn fear they will face “massive” extra costs from tomorrow.

GOLD Coast adventure tourism operators fear soaring insurance premiums as they battle to survive the COVID-19 downturn.

Public liability insurance, covering injuries to a customer or damage to property, is crucial for protection from being sued for negligence.

Adventure tourism operators already pay higher premiums than others in the leisure sector because of the inherent risk in their operations.

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Chinese visitors Lin Yun and Li Qianling enjoy a hot air balloon ride. Picture: Hot Air Ballooning Gold Coast

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But some fear hefty increases when premiums are recalculated for the next year from July 1.

Paramount Adventure Centre’s David Payne, said insurance was already a “massive cost” for the Burleigh Heads indoor rock climbing centre.

“It’s all up for renewal next month and there are definitely COVID-19 restrictions,” he said.

“We can still get public liability insurance, but we’re concerned when the renewal occurs how the premium will be affected.

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“It’s already a massive cost, so we hope that doesn’t get affected too heavily.”

Mr Payne said despite his concern his business had a “long-running relationship” with his brokers and underwriters which have been able to provide some relief.

Go Ballooning owner Murray Blyth said he had paid public liability insurance until September.

But it was based on 11,000 passengers for the 12 months to September and not the 3000 he has projected he would end up with.

“I hit them up for a refund saying ‘Guys we are not going to fly that many people so we have to do an adjustment,” he said. “They gave some adjustment and it is useless.”

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David Payne of Paramount Adventure Centre in Burleigh. Picture: Jerad Williams

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Mr Blyth said the issue with hot air ballooning is there is just one insurer – Lloyds in London. I’m not sure if our insurance will go up or down come September,” he said.

“But right now I was paying $20 per person (in public liability insurance) but that is $35 now because we are flying less people but still paying a large amount of insurance.”

Insurance Council of Australia spokesman Campbell Fuller said there was a global tightening of public liability cover.

“Adventure tourism and high-risk sport activities have always been exposed simply because it has always been pricey,” he said. “These are risky activities and expensive claims are quite common.”

Mr Fuller said worldwide there had been a “contraction of the risk appetite of insurers to take on these forms of public liability cover”.

“But it remains widely available in Australia. Some operators may find it more challenging than they expected to find cover but it is available in the market.”