Cycling Event or Tour Operator? Which One Are You?

When you work with cycling businesses as much as I do, you begin to notice a pattern that could be putting a lot of well-meaning cycling events at risk.

I regularly speak to people who believe they’re covered by their current insurance. They’ve taken out event or business insurance, thinking it ticks the right boxes. But in many cases, it doesn’t, and that’s a serious issue. Because a large number of cycling businesses that think they’re running “events” are actually operating as tour operators under Package Travel Regulations.

And the difference isn’t just technical, it’s the difference between being covered and being exposed.

You Might Be a Tour Operator Without Realising It

Here’s the reality: if you’re organising more than one element of a package, be it accommodation, transport, meals, or guided activities, you’re a tour operator. It doesn’t matter if it’s a small group or a multi-day festival. If you’re charging money for a packaged experience, you fall under the Package Travel and Linked Travel Arrangements Regulations (2018).

It’s a real emerging market, and we’re seeing lots of new and existing businesses wanting to offer more than a day’s riding for their customers. 

I’d estimate that around 50% of the cycling businesses I speak to that market themselves as event organisers are, in fact, functioning as tour operators in the eyes of the law. 

That gravel weekender with camping? Tour operator. Training camps with coaching and meals? Tour operator. Multi-day sportive-style events with bag transfers and pre-booked hotels? You guessed it, tour operator. Even small domestic guided trips fall under tour operator classification. 

And it’s not just the businesses themselves that are unaware. Many insurance companies also fail to deliver the right protection with policies built for single-day events instead of multi-component packages with consumer protections built into law.

Event Insurance vs. Tour Operator Insurance: The Key Differences

So what exactly is the difference between event and tour operator insurance?

Event Insurance is usually designed for single-day or short-term activities. It may include public liability, equipment cover, and cancellation protection for that specific event. It’s ideal for things like races, festivals, or expos—situations where your responsibility largely starts and ends on the event day.

Tour Operator Insurance, on the other hand, is built around ongoing responsibility for a package of services. It includes:

• Professional indemnity –  in case something in the package doesn’t go to plan [errors and omissions by you]
• Public and employer’s liability – for incidents involving guests or staff [accidents or damage to property]
• Insolvency protection – with specific bonding and other protection schemes
• Cover for third-party suppliers – like hotels, transfer services, or activity providers (included within your Professional Indemnity and Liability where you have selected them to protect the service).
• Protection before, during, and even after the trip (claims can arise during and even after the trip).
  

It’s also the kind of insurance you’ll need if you want to operate legally under travel package regulations—especially if you’re working internationally or dealing with customer deposits.

Underinsurance Isn’t Just a Risk—It’s a Liability

The dangers of having the wrong cover go beyond just financial risk. You could face regulatory action, legal costs, or even reputational damage if something goes wrong and your insurance doesn’t respond.

Take a hotel fire or a case of food poisoning. If you’re only insured as an event organiser, your policy might not cover those elements as they’re technically not part of the “event” itself.

Unfortunately, I’ve seen this happen. Businesses that thought they were fully insured ended up having to settle claims themselves or faced disputes with insurers over exclusions.

Is Tour Operator Insurance More Expensive?

One of the biggest misconceptions I hear is that specialist insurance must cost more. But that’s not necessarily the case. In fact, tour operator insurance can be comparable or even cheaper than the event or generic business insurance many cycling brands are currently using. And while some current policies might include cancellation clauses, the risk of staying on the wrong cover usually outweighs this worry. 

My Advice: Know Your Offer

If you’re organising a ride that includes a hotel booking, a support van, and a post-ride dinner, you’re not just creating an event, you’re offering a packaged experience. Your insurance should reflect that.

Want to know more? Fancy a chat with me or the rest of the team? You can speak to us directly at forbusiness@bikmo.com