Tour Operator’s Liability Insurance
Tour Operator’s Liability Insurance is compulsory for every tour operator, according to Art. 61, para. 2, item 4; Art. 97, para. 1 et seq. of the Tourism Act, covering its liability for damages caused to consumers of an organized group and individual tourist trips, as a result of non-payment to its contractors, including in case of insolvency and bankruptcy.
Whom is the insurance designed for?
The insurance is designed for all tour operators who are registered or shall be registered for tour operator activities, according to the Tourism Act.
What is covered by the insurance?
The insurance covers the liability of the tour operator for damages caused to consumers of organized or individual trips, due to non-payment by the tour operator to its contractors, including in case of insolvency and bankruptcy, namely:
- refund of the amounts paid by the consumer under contracts with the tour operator before the start of the trip;
- payment of the difference in cases when during the trip only part of the services agreed in the contract are provided;
- payment of the costs related to the return of the consumer to the starting point of the trip;
- payment of costs for claims settlement made with the express written consent of the insurer.
When is the insurance taken out?
The Tour Operator's Liability Insurance is taken out annually by the tour operators registered under the Tourism Act for a period of one year and is submitted to the Ministry of Tourism within 30 days before the expiry of the previous insurance.
Where is the insurance valid?
The insurance is concluded for the activity of tour operators - legal entities registered in the Republic of Bulgaria, regardless of the place of residence of the travellers, the place of departure or sale of the tourist package.
Why should I take out insurance with Lev Ins?
- Competitive pricing conditions in accordance with individual agreements and in accordance with the legal limits of liability;
- A deductible is not applied;
- Accurate risk assessment and individual approach.
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Frequently asked questions
Who requires the insurance?
The insurance is required by the Ministry of Tourism and shall be presented by any registered tour operator or by one who is about to register. For entry in the register of tour operators and travel agents the entities under Art. 61, para. 2, item 1 of the Tourism Act shall submit to the Minister of Tourism an application declaration for carrying out tour operator activity, including when the activity will be performed only electronically, and shall enclose a copy of a preliminary insurance contract to the application declaration.
How is the cost of insurance determined?
The price of the Tour Operator's Liability Insurance is calculated on the basis of a limit of liability determined in relation to the declared annual turnover (the declared turnover includes only the revenues from the sale of tourist packages to travelers and does not include the turnover from the sale of tourist packages to other tour operators) for the previous financial year and presence or not of charter flights in the sold tourist packages, as well as according to the individual risk assessment of the applicant for insurance.
What is not covered?
The insurance does not cover the payment of compensation in the following cases:
- The activity of the insured in his capacity as a travel agent;
- The difference in the quality of tourist services, according to the contract for organized travel with the consumer, and the ones actually provided during the trip;
- Compensation for damages and interest arising from non-performance of contractual obligations of the insured to his creditors.