Insurance for Travel Agents and Tour Operators

Insurance for Travel Agents and Tour Operators

Why Insurance for Travel Agents and Tour Operators is a must

Travel Agents are professionals that helps individuals, groups, families, couples plan and arrange their travels.

Booking flights, accomodation, car hire, and any recreational trips can all be organised through a travel agent.

In providing these services, there is the risk and potential for unforeseen circumstances that could result in cancellations, changes to itineray, or you could simply make a mistake whilst organising the bookings. If a customer results in a financial loss due to these, your company could be liable for the these costs.

Adequate insurance can protect you from these financial implications to your business.

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What does Professional Indemnity cover?

An example for a Professional Indemnity claim for a travel agent could be that you as the travel agent planned a trip overseas for your customer, and you mistakenly provided incorrect information about VISA requirements. As such, your client was unable to board the plane and had to rebook another plane ticket. Your customer sues you for the cost of the new airfair. Professional Indemnity insurance can look to pay for these costs.

This type of insurance policy can provide coverage for potential claims made against us for any errors, omissions, or negligence that may have occurred during the course of our work. It can cover the cost of legal fees and compensation claims that may arise due to mishaps or professional misjudgments.

Making a mistake that was not intentional;

A client misinterpreting the advice you’ve given;

Breach of Professional Duty

Is Insurance Mandatory for Travel Agents?

Whilst Professional Indemnity Insurance is not mandatory, it is highly recommended as it’s your greatest exposure. It is fairly inexpensive for the level of cover it can provide your business.

You will find that if you own commercial property, your bank may require you to insure your building in order to obtain finance.

If you lease a shop, your landlord will most likely require you to have the below requirements

Public Liability Insurance $20,000,000, Plate Glass Cover, Cover for your fitout, and potentially even business interruption cover.

Workers Compensation is mandatory for all businesses that have employees.

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How Morgan Insurance Brokers can help you

Travel Agents have a range of risks that insurance can provide financial protection against. Although most policies aren’t mandatory, you will note that they may be required by landlords, or banks.

Morgan Insurance Brokers can provide cost effective, tailored insurance covers that will allow agents to trade in peace knowing that they are protected.

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