Do I need Business Car Insurance for my Travel & Tourism Company?

Your guests might not see it, but you know that running a hospitality business means there are dozens of tasks to manage behind the scenes. One of these is ensuring your business has reliable transport. Business Car Insurance is essential, whether your business has its own vehicle or you mostly use your personal vehicle for business. Using your personal Car Insurance is not ideal when your vehicle is being used for business purposes. Not sure why? The team at Budget Insurance are here to share eight simple reasons why your hospitality business needs Business Vehicle Cover.

Today’s dynamic hospitality landscape: what you should know

The hospitality industry is much bigger than just hotels and restaurants. In South Africa–and globally—it is part of a growing network that supports tourism, lifestyle services, and even rural economic development. If you run a guesthouse, a catering business, a mobile spa, or manage lodges in remote areas, you’re part of a sector that’s proven both resilient and valuable.

Tourism’s role in driving hospitality growth

Tourism remains a key driver for hospitality. South Africa welcomed 8.9 million international tourists in 2024 1. This represents a 5.1% growth on the previous year, contributing 8.8% to Gross Domestic Product (GDP). But the hospitality industry serves both local and international tourists; because every tourist needs accommodation, food, activities—and often–transport from point A to B.

Shifting consumer expectations

Guests expect clean rooms and seamless service, from airport shuttles and eco-tours to on-demand room deliveries. If your business is mobile, your vehicles are part of the guest experience. Without reliable transport, your service offering can fall short.

Urban vs. rural hospitality trends

Urban areas like Cape Town, Durban, and Johannesburg remain popular with both local and international tourists. But rural areas are attracting attention with more people looking for a digital-detox, off-the-grid getaway 2. These often require 4x4s or off-road vehicles to access remote lodges or campsites.

This feeds into a growing demand for eco-conscious travel, especially among younger guests and international visitors. Whether you're looking into electric shuttles and delivery vehicles, having fit-for-purpose insurance is becoming even more important.

Technology’s impact and industry resilience

Booking apps, digital check-ins, and online reviews have changed how guests interact with your business. Artificial intelligence (AI) is set to transform it even further. This shift is prompting many hospitality businesses to find creative ways to engage and retain customers, such as offering faster deliveries or expanding shuttle services beyond just airport transfers.

Despite economic pressures, loadshedding, and rising operational costs, the sector has remained remarkably resilient. Transport often plays a key role in that stability, keeping staff mobile, services consistent, and customer experiences on track.

Skills development and job creation

The World Travel & Tourism Council (WTTC) forecasts that travel and tourism will support nearly 2 million jobs in 2025 3, accounting for 11.3% of all employment in South Africa. It’s clear that the hospitality industry plays a major role in both job creation and skills development. Many entry-level roles don’t require formal qualifications, but they open the door to valuable on-the-job training and long-term growth opportunities.

8 Reasons you need Business Car Insurance for your hospitality business

Whether you operate one branded van or a fleet of guest shuttles, Business Car Insurance protects what keeps your hospitality business moving. From guest transfers to supplier runs, your vehicles are constantly on the go, and every kilometre brings potential risks. Here's why having the right cover in place is smart.

1. Covers guest transport services

Many hospitality companies offer guest transfers such as lifts to the airport, a shuttle to a nearby tourist site, or a guided wine tour. If something happens while a guest is in your vehicle, personal insurance won’t pay out. Commercial Vehicle Insurance ensures you’re covered while transporting paying guests, whether it's a routine drop-off or a bespoke experience.

There are numerous stories about hotel shuttles being involved in accidents while transporting guests. If this were to happen to you while using your personal vehicle, your Car Insurance would not cover it. You need Business Car Insurance to ensure the cost of vehicle repairs and third-party liabilities are covered.

2. Protects against commercial use risks

Hospitality businesses often clock higher mileage, make frequent stops, and run on tight schedules. Commercial Vehicle Insurance is tailored for this kind of activity, whether your vehicle is used daily, weekly, or only during peak seasons. Standard Car Insurance is designed for private use only, such as school runs and grocery trips. It doesn’t apply to the wear and tear or risk level that comes with operating vehicles as part of a business.

3. Safeguards against liability claims

Accidents are unlikely to only affect your vehicles. They can lead to legal claims from guests, suppliers, or the public. Someone might be injured getting in or out of your vehicle, or they may blame your driver for damages. These liability claims can cost your business dearly. Hospitality Insurance helps to cover these third-party costs, protecting your finances and reputation.

4. Covers delivery and supplier runs

Need to collect fresh ingredients, deliver event equipment, or transport laundry between locations? If you're using your business vehicle for these runs and something goes wrong, like an accident or breakdown, you want proper cover and support for repairing or replacing your vehicle.

5. Minimises downtime with fast repairs

Every day your vehicle is off the road is a missed opportunity. Commercial Vehicle Insurance includes access to approved repairers, quick claims processing, and optional car hire. That means less time waiting for quotes and more time doing what you do best—serving guests.

6. Boosts your business’s credibility

Appearances matter. Having insured business vehicles, especially if they’re branded, shows customers that you run a responsible, professional operation. It can also help when bidding for corporate contracts or partnering with travel platforms, where proof of insurance is often required.

7. Covers multiple drivers

Your staff might work in shifts, or you might rotate drivers depending on the day’s schedule. Hospitality Insurance allows for multiple drivers, meaning your team stays covered no matter who’s behind the wheel. This flexibility is essential in the hospitality space, where many businesses operate 24 hours a day.

8. Optional extras to match your needs

Not all businesses operate the same way, so why should your cover? The best Business Insurance offers customisable extras, so you only pay for the cover you need. If your business vehicles never transport passengers, you don’t need Passenger Liability Cover. However, if your vehicles operate at all hours of the day and over long distances, roadside assistance and towing cover should be included.

Get a Business Car Insurance quote

When your vehicles are part of your livelihood, it doesn’t make sense to leave them unprotected. Business Car Insurance from Budget Insurance is designed to keep hospitality businesses like yours running smoothly, with the right support when you need it most. Get a Business Car Insurance quote today. We’re here to help and are happy to answer any questions about finding the right cover for your business.