The insurance industry is assessing the risk exposure of industries associated with tourism, especially small businesses, which are hoping liability insurance can become a readily attainable part of their business processes.
Newly appointed president of the Bahamas Insurance Association (BIA) Warren Rolle told Guardian Business yesterday that the body has met with the Bahamas Hotel and Tourism Association (BHTA) “who were interested in sourcing group liability cover for various vendors seeking to market goods and services to the hotel industry”.
According to Rolle, the BIA went to the market to see which companies might be willing to handle the risk profile.
“We have forwarded details received from the BHTA to member companies to ascertain their appetite for this risk exposure and are currently awaiting responses,” he said.
An insurance industry insider who spoke on condition of anonymity explained that The Bahamas market consists heavily of reinsurers that have a minimal risk profile associated with their businesses.
He explained that it can be very difficult to group insurance needs for an entire sector as the BHTA might be hoping to do.
He also added that the government might consider putting out a request for proposals for the group insurance and see which company bites, especially if the premiums are backed by the government.
Deputy Prime Minister and Minister of Finance Peter Turnquest revealed recently that government had met with the insurance industry to determine how it could help small businesses to acquire more affordable liability insurance, which is important when providing goods and services in the tourism industry.
Liability insurance premiums can get as high as $28,000 per year for small businesses operating in the tourist market. Some small businesses cannot find liability insurance at all.
The industry insider said while there are hundreds of insurance companies, their appetite for risk is very low.
Education: Florida International University, BS in Journalism