The tourism sector is one of the pillars of the Portuguese economy, representing over 15% of GDP. However, exposure to risk is proportional to the size of the business: from guest accidents to property damage, including cancellations and civil liability, the risks are multiple and the financial consequences can be devastating.
Portuguese legislation imposes specific mandatory insurance for tourist developments, local accommodation, and travel agencies. However, most operators only contract the legal minimum — and only discover the gaps when they need to make a claim.
Mandatory insurance by activity type
Each type of tourist operation has distinct legal obligations regarding insurance:
- Tourist developments (hotels, apart-hotels, resorts): mandatory civil liability insurance with minimum capital defined by law, work accident insurance, and fire insurance
- Local accommodation: civil liability insurance covering property and non-property damage caused to guests and third parties, with a minimum capital of €75,000 per claim
- Travel and tourism agencies: mandatory professional civil liability insurance and a guarantee or insolvency insurance to protect travellers
- Tourist entertainment operators: civil liability and personal accident insurance for participants, mandatory for adventure and nature activities
- Rural and housing tourism: civil liability insurance with coverages adapted to the type of accommodation and complementary activities offered
Coverages that fall outside the legal minimum
Mandatory insurance complies with the law, but rarely effectively protects the business. There are significant risks that remain uncovered:
- Damage to the contents of the establishment (furniture, kitchen equipment, audiovisual systems) due to fire, flood, or vandalism
- Loss of revenue due to business interruption after a claim
- Civil liability for food poisoning or allergies
- Damage caused by guests to the property and its contents
- Theft of guests' belongings deposited in the establishment
- Coverage for extreme weather events (storms, floods) impacting the structure
- Legal protection and defence costs in claims processes
What we recommend to companies in the sector
An appropriate policy for hospitality and tourism should be tailored to the business, considering the location, type of guests, seasonality, and activities offered. Essential points include:
- Annual review of insured capital to keep up with investments in renovation and equipment
- Inclusion of business interruption coverage with an indemnity period appropriate for seasonality
- Extension of civil liability to complementary activities (spa, swimming pool, catering, transfers)
- Personal accident insurance for seasonal employees, who are often unprotected
- Legal protection coverage for disputes with guests and booking platforms
At Adler & Rochefort, we work with tour operators of all sizes — from local accommodation to hotel chains — and structure insurance programmes that go far beyond legal compliance. Contact us for a free analysis of your current situation.