How much does travel agency insurance cost?

Travel agents pay an average of $29 per month, or $350 annually, for general liability insurance. This policy is sometimes called public liability insurance.

General liability insurance covers common third-party lawsuits related to bodily injuries and property damage. For example, a client might trip over a display of brochures in your office and suffer a concussion, or break their smartphone in the fall.

This policy also helps pay for legal fees if someone sues your business over an advertising injury, such as copyright infringement or defamation. For example, a travel agent could get sued for invasion of privacy for posting photos of a client's vacation on Instagram without their permission.

Below is the average general liability policy for travel agents who buy from Insureon:

Insurance premium: $29 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500

The per-occurrence limit is the maximum your insurance company will pay for a single covered incident, while the aggregate limit is the most the insurer will pay for all covered claims during the policy period, typically one year.

The cost of general liability insurance depends on factors such as the coverage limits and deductible you choose, whether you work from home or an office, your business income, and any additional insured endorsements. 

Learn more about how your premium is calculated and how to save money on general liability coverage.

Travel agencies pay an average of $52 per month, or $621 per year, for a business owner’s policy.

A business owner's policy, or BOP, bundles general liability coverage with commercial property insurance to cover both third-party risks and your business property. It typically costs less than purchasing each type of coverage separately.

A BOP protects against accidents that injure clients or damage their property. It also pays for repairs if your building or business personal property is damaged by a fire, storm, or vandalism. Because of its increased coverage and affordability, it’s the policy most often recommended by Insureon’s agents.

This is the average BOP for travel agents who buy from Insureon:

Premium: $52 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500

Small, low-risk travel agencies are often eligible for a business owner's policy.

Policyholders may see higher costs if they choose to add endorsements to their policy. For example, business interruption insurance would cover financial losses if damage caused by a fire or other covered property claim forces you to temporarily close your business.

The cost of a business owner's policy is based on several factors, including the value of your business property, where you are located, the number of employees you have, and your policy's exclusions.

Travel agents pay an average of $38 per month for errors and omissions insurance, or $451 annually. This policy is sometimes referred to as professional liability insurance.

Errors and omissions insurance covers legal defense costs related to professional negligence or failure to provide services that meet the standard of care for your industry.

For instance, if a travel agent promises three nights at a specific hotel to a client but fails to secure the booking, their E&O policy would pay for the resulting lawsuit, including attorney's fees and a settlement or judgment.

Below is the average errors and omissions policy for travel agents who buy from Insureon:

Premium: $38 per month
Policy limits: $1 million per occurrence; $1 million aggregate
Deductible: $500

Travel agent errors and omissions costs depend on several factors, including your sales volume, the booking services you provide, your claims history, and the size of your business. As with other types of insurance, you can save money on E&O coverage by choosing lower limits or a higher deductible.

Reducing your risks also helps you avoid claims and keep your premium low. This includes clear communication with clients and thorough documentation of all communications and agreements.

For travel agencies and other companies that provide professional services, the average cost of workers’ compensation insurance is $49 per month, or $583 annually.

This policy covers medical expenses related to employee injuries, such as an assistant who trips and suffers an injury in your office. It also provides partial lost wages while an employee is disabled or temporarily unable to work.

Most workers' comp policies include employer's liability insurance to protect against lawsuits from injured workers, though they give up their right to sue once they accept benefits.

Businesses with employees typically must purchase workers' comp to comply with state requirements and avoid penalties. For example, businesses in California, Pennsylvania, and New York must carry workers' comp if they have one or more full-time or part-time employees. Florida businesses need coverage when they have four or more employees, and coverage is optional in Texas.

Since health insurance plans can deny claims for injuries related to your job, workers' comp coverage is also recommended for sole proprietors as a financial safety net and for peace of mind.

The cost of workers' comp depends on several factors, primarily the number of employees you have and their occupational risks. You can save money on workers' comp coverage by classifying your employees correctly and implementing a risk management plan to avoid work-related injuries and subsequent claims.

Businesses that offer professional services, including travel agents and tour operators, pay an average of $163 per month, or $1,954 per year, for commercial auto insurance.

This policy pays for legal fees, medical treatment, and repairs if your company vehicle injures someone or damages their property in an accident. It can also cover vehicle theft, vandalism, and weather damage.

Most states require commercial auto insurance for vehicles owned by a business. For personal, rented, and leased vehicles used for work purposes, look to hired and non-owned auto insurance (HNOA) instead.

The cost of commercial auto insurance depends on several factors, including your policy limits, additional insured endorsements and other coverage options, the value of your vehicles, and the driving records of anyone at your travel agency who is permitted to drive them.

Opting out of coverage you don't need, such as comprehensive auto insurance, will result in a lower premium.

Professional services businesses, including travel agents, spend an average of $123 per month, or $1,480 per year, on cyber insurance. This policy is also called cyber liability insurance or cybersecurity insurance.

Cyber insurance helps your small business recover financially after a cyberattack or data breach. It can cover data breach investigations, cyber extortion payments, and costs related to complying with your state's data breach laws.

A cyber insurance policy is especially crucial for travel agencies that store personal information, such as credit card numbers, phone numbers, and email addresses belonging to your clients.

The cost of cyber insurance and the amount of coverage you need depend on how much personal data your business handles, along with any cybersecurity measures you implement to reduce your risks.