Travel agent business insurance
Who needs travel agents’ insurance?
Travel agents, who assist clients and customers in booking transportation, lodging and entertainment plans, should have errors and omissions and general liability insurance. Problems can arise when working with clients who do not agree with certain approaches, or who are not satisfied with the services they receive. Getting insurance for travel agents is a great way to protect yourself while ensuring your agency continues to provide beneficial services to your clients. This is particularly true for trip planners who work privately or own a small business.
Example professions we also insure
Insurance policies available for travel agents
For most travel agents, there are three main types of insurance policies that are worth considering—each of which can provide its own unique aspects of protection to help you run your business with confidence.
Errors and omissions insurance for travel agents
Errors and omissions, or professional liability insurance provides a number of potential benefits to travel agents, including coverage for negligence, personal injury (such as libel and slander), defense costs and also claims against past-rendered services. Though claims including fraudulent acts, bodily injury and property damage usually aren't covered by E&O insurance, it is very important for professionals who regularly provide services, consultation or advice to clients, as travel agents often do.
Here’s an example of how a travel agent could be protected by professional liability insurance. A client asks a travel agent to help them plan a trip to their niece’s destination wedding. The travel agent books a flight that arrives the morning of the wedding. The flight is delayed, and transportation to the wedding location is unreliable, so the client misses the ceremony. When they return, they sue the travel agent for mismanaging the trip. A professional liability or E&O policy could cover the costs for the travel agent to defend themselves, as well as any settlement or judgment.
In today's environment, there are many unknowns that a travel agent has to navigate when booking travel for a client. Say a travel agent books a cruise for a client, but the cruise line files bankruptcy before the client's date of embarkation. The clients are unhappy and sues the agent for booking the trip with an insolvent company, even if the financial trouble was unknown to the agent at the time of booking. Professional liablity would cover the agent in this case.
If a client should react negatively to your trip planning, flight booking or hotel recommendations or feel as if they or their business have been damaged in some way by the services you provide, you or your business may be sued. Legal problems for travel agents can come in a number of different forms, such as advertising injury and similar claims.
General liability insurance for travel agents
While errors and omissions coverage is important for travel agents, there are a number of scenarios that are not typically covered under this form of insurance. General liability—also called commercial general liability (CGL)—covers small businesses against property damage, claims of bodily injury and associated medical costs.
For example, if a client comes into a travel agent’s office on a rainy day, they may slip and fall on the floor, injuring themselves. In this case, the travel agent’s general liability policy could cover the client’s medical expenses, including any lost wages due to the injury.
Business owners policy (BOP) for travel agents
For many travel agents, a business owners policy (BOP) may be the best choice. A BOP is a combination of general liability and business property insurance and is often used to provide coverage to small businesses with the aim of protecting valuable equipment.
If, for example, a travel agent’s office is damaged by a fire and their computer and other equipment are ruined, a BOP policy could cover the cost to replace the equipment and get the travel agent back in business.
Why do travel agents choose Hiscox?
At Hiscox, we understand just how much work goes into being a successful travel agent. Whether you've opened your own business or are working in a different capacity, we can help you grow your career by reducing risk with our travel agency insurance policies, allowing you to focus on what really matters.
Here are six reasons why travel agents choose Hiscox above other providers for professional liability insurance and general liability insurance:
- Flexible payment options: We offer you the option of making monthly payments (with no additional fees) to help you manage your cash flow.
- Tailored insurance: We specialize in businesses like yours and tailor coverage to the risks in your field.
- Claims responsiveness: When a covered claim is reported, Hiscox will immediately assign a dedicated claims representative to assist you.
- Coverage for contracts: Our architects insurance coverage satisfies most standard contract insurance requirements.
- Worldwide coverage: A business insured through Hiscox is covered for work done anywhere in the world, as long as the claim is filed in the U.S., a U.S. Territory or Canada.
- Passion for service: Agents knowledgeable about your business concerns will provide you with excellent service—4.7/5 people surveyed recommended us.
Ready to learn more about how Hiscox insurance can help mitigate risk with insurance coverage? Get a fast, free quote online. If you have questions, call us at 1-866-283-7545 and speak with a licensed Hiscox insurance agent, Monday – Friday, 7am – 10pm ET.
This information is provided to assist you in understanding the coverage we offer and does not modify the terms and conditions of any insurance policy, nor does it imply that any claim is covered. Coverages are subject to underwriting and may not be available in all states.