Insurance for Travel Agents
Americans don't get a lot of paid time off. When they are able to save up for a vacation, they want everything to be perfect. That's why they turn to travel agents to plan dream getaways and take care of details like…
- Airline tickets.
- Car rentals.
- Hotel reservations.
Whether they're planning a family reunion or a honeymoon, people turn to travel agents for their expertise. If something goes wrong and their vacation is ruined, they might sue your agency.
Travel agent insurance can help protect you. Let's look at some popular policies.
General Liability Insurance
General Liability Insurance can help cover legal costs if you're sued over third-party (non-employee) accidents and injuries. For example, it may cover a lawsuit over:
- A mail carrier slipping and falling on your property (third-party bodily injury).
- A customer tripping in your office and dropping their laptop (third-party property damage).
- Your agency using a trademark that is too similar to a competitor's (advertising injury).
And this policy is pretty affordable. The average travel agent spends about $400 annually for their General Liability Insurance. That's about $33 per month.
You can save even more by purchasing a Business Owner's Policy (BOP) instead. This bundles your General Liability Insurance with Commercial Property Insurance so you also get coverage for:
- Your office space.
If you rent your office, your landlord may require you to have both of these policies to sign the lease.
Errors & Omissions Insurance
If you offer your advice, expertise, or professional services for a fee, Errors & Omissions Insurance (also called Professional Liability Insurance) is a must-have. E&O Insurance can pay for legal costs when customers sue your travel agency over professional errors like…
- A different travel experience than what you promised.
- Mistakes you made booking someone's travel.
- Unsatisfactory accommodations.
- Negligence in professional responsibilities.
So say a customer claims your travel agency forgot to book a connecting flight and they got stuck in a strange city for a night. They could try to sue you to recoup their losses for the hotel and flight they had to book and the extra days they had to take off work.
Because you can't control every aspect of your clients' travel, you'll want to protect your business from lawsuits over the travel services you sell. The typical travel agent E&O policy costs $750, which works out to less than $63 a month.
If you have employees at your travel agency, your state may require you to have Workers' Compensation Insurance. Check the Worker's Comp laws in your state to see your obligations.
Workers' Compensation Insurance can pay for your employees' medical bills if they suffer an occupational illness or injury. It can also pay for:
- Ongoing medical expenses.
- Missed wages.
For example, say your employee slips on an icy patch in your agency's parking lot. They fall and tear their ACL. The MRI, surgery, rehab, and other costs can easily end up to between five and six figures. But if you have a Workers' Comp policy, it should be able to cover the medical expenses.