Since 2020, bike tourism has experienced significant growth across the U.S., with projections indicating an increase from $313 million in 2024 to $671 million by 2030. A major driver of this growth is the rising popularity of e-bikes, which allow a broader demographic to enjoy cycling without the same level of physical exertion. However, the widespread adoption of e-bikes has also introduced new risks for participants.
For tour operators, proactively managing these risks is essential to reducing incidents and injuries. Below are several key insurance coverages to review, along with best practices to help implement a robust risk management strategy.
Key Insurance Coverages
General Liability
This is the foundation of any operator’s insurance program. General liability coverage protects your organization from third-party bodily injury and property damage claims. Ensure your policy explicitly includes e-bike activities and extends coverage beyond your premises.
Participant Accident Insurance
Often overlooked, this coverage supplements your general liability policy and pays for guest injuries that are not the result of your negligence. We recommend a minimum of $25,000 in coverage, with higher limits available. This goodwill benefit helps support injured guests while protecting your general liability policy from frequent minor claims.
Inland Marine
This coverage protects your equipment—such as bikes, helmets, and accessories—both on and off your premises. Standard property policies often exclude or limit off-site coverage. Work with your broker to ensure you have the appropriate coverage in place.
Additional Coverage Considerations
Depending on your business model, you may also need Workers’ Compensation, Commercial Auto (including Hired and Non-Owned Auto), and Professional Liability insurance. Speak with your broker to confirm comprehensive protection for your operation.
Risk Management Best Practices
Waiver of Liability
A well-drafted waiver is your first line of legal defense and is typically required by insurers. However, waivers are not a “get out of jail free card.” Consult with an attorney experienced in outdoor recreation law in your operating state, and review our webinar on common waiver mistakes.
Pre- and Post-Trip Inspection Checklist
Equipment-related injury claims are among the most common. Implement a standardized checklist—completed and signed by both staff and customers before and after each trip—to help demonstrate diligence and reduce liability.
Maintenance Schedule
Wear and tear are unavoidable in a rental or tour fleet. Maintain a consistent maintenance schedule and document all service activity. Doing so improves safety and supports favorable underwriting evaluations.
Safety Orientation
Provide a brief in-person or video orientation for all guests prior to each tour or rental. Have participants sign a form confirming they have viewed and understood the safety procedures before beginning their ride.
Inclement Weather Policy
Create a clearly defined weather policy and ensure staff are trained on how to handle inclement conditions like rain, lightning, or extreme heat. This minimizes avoidable injuries and improves guest confidence.
Incident Response Form
Minor incidents are part of the cycling experience, but they should never go undocumented. Use a standardized form to record all accidents or injuries. This documentation can be invaluable if a claim arises later. More information on incident response best practices is available at graniteinsurance.com.
Ready to Evaluate Your Program?
Contact us today for a consultation on your current insurance program and risk management practices.
