Do Travel Agents Need Insurance?

In today’s world, where travel uncertainties like flight delays and cancellations are common, insurance becomes a crucial tool for travel agents. It helps you prepare for the unexpected, giving you a sense of control in the face of these obstacles.

There are two types of insurance to consider as a travel agent.

Errors and Omissions Insurance/Professional Liability Insurance

This insurance includes coverage for negligence, personal injury, defense costs, and claims against past services. This coverage can help if a client is dissatisfied with the services or if a mistake occurs during the planning process.

Let’s use an example. A client books your service to help plan a trip to a best friend’s destination wedding. You book your client a flight that gets canceled, and due to inclement weather, the airport has no other flights arriving at the destination on time. Your client misses her best friend’s wedding. Your client sues the travel agent for mismanaging the trip. An E&O policy could cover the costs for travel agents to defend themselves and any judgment settlement.

General Liability/Commercial General Liability

While errors and omissions coverage is very important for travel agents, some scenarios may need to be covered under this form of insurance. General liability is another insurance that covers small businesses against property damage, claims of bodily injury, and associated medical expenses.

Let’s look at another scenario. A client comes into your office on a rainy day. Upon entering the office, they slip, fall, and injure themselves. A general liability policy could cover the client’s medical expenses, including any lost wages due to the injury.

For a travel agent who assists clients in booking transportation, lodging and entertainment, insurance is not just a consideration, it's a shield of protection. It provides a safety net, ensuring a more secure and protected experience in your profession.