The Irish Travel Agents Association (ITAA) has said some of its members are paying over €400,000 a year in insurance premiums.
Pat Dawson, chief executive of the association, has called on the Government for "urgent action", adding that "insurance claims have put good businesses out of business".
Mr Dawson said personal injury claims are “happening all the time” and were the “scourge of the travel industry”.
“The number of claims and the cost of the claims is hanging over all of us,” he said. Mr Dawson said the “knock-on effect” for tour operators “is that it adds to their costs”.
“Some of our bigger members are paying over €400,000 a year in insurance premiums. It can close businesses and will close businesses down,” he said.
“You go into the market place and you have to take what you’re offered. You can’t operate as it’s a legal requirement under the licence, that you have insurance cover.
"The Irish Government has promised that they will tidy all this thing up and help businesses to stay afloat but insurance claims have put good businesses out of business. It really is shocking.
“We had our conference at the weekend and it was the topic of conversation among members and the worry people have about it. The Government are talking about it but we need urgent action. Small companies in particular are exposed.”