Travel agent business insurance

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.

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.

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.