What about insurance?
- All travelers should be obliged to pay for comprehensive insurance cover including such irregular but extremely expensive events as repatriation of mortal remains
- Each the travel agent, tour operator and venue should discuss their particular activities and exposure with their brokers and ensure the widest possible cover is provided for
- Cover for liability in terms of Section 61 of the CPA is extremely important - see details below
- The good news is that if the travel agent, tour operator and venue take the steps I have suggested above, their risk profile should be reduced materially and they should be able to negotiate better deductibles and premiums
Liability in terms of section 61 of the CPA could arise from one of the following:
- ‘Unsafe goods’
- ‘Product failure, defect or hazard in any goods’
- ‘inadequate instructions or warnings provided to the consumer pertaining to any hazard arising from or associated with the use of any goods’
Why is it serious and absolutely imperative to not only discuss your exposure with your insurance broker but also to review your contracts with third party suppliers (and include back-to-back indemnities) of goods?
- The liability is absolute i.e.
- Liability is not limited to the ‘producer, importer, distributor or retailer’ – includes e.g. an adventure tourism operator providing a faulty quad bike/canoe or an event organizer arranging a conference at a venue where a chair collapses and the person is seriously injured:
‘A supplier of services who, in conjunction with the performance of those services, applies, supplies, installs or provides access to any goods, must be regarded as a supplier of those goods to the consumer, for the purposes of this section’
- The nature of damage (‘harm’) that made be claimed for is quite startling & it includes the following:
(a) the death of, or injury to, any natural person;
(b) an illness of any natural person;
(c) any loss of, or physical damage to, any property, irrespective of whether it is movable or immovable; and
(d) any economic loss