Did you know that there are over 30,000 travel agents employed in the United States. People will always travel to unwind. Some will go to popular beaches to enjoy renting jet skis. Others who are not afraid of the winter’s cold might visit Europe’s ski resorts to challenge the slopes. Of course, daredevils might book travel packages in order to reach popular skydiving locations.
There’s a lot of money to be made when running a travel agency. Nonetheless, the risks you face might disrupt revenue generation. A client might file a claim against your business for violation of good faith because his tour guide didn’t show up. It’s also possible for the tour operator you partnered with to file a claim for breach of contract or advertising injury.
The best way to protect your business assets is to construct excellent insurance package. This article will help you learn about the components of a good travel agency insurance policy.
| CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $2,000,000 | $1,000,000/$2,000,000 |
| Aggregate limit | $2,000,000 | $2,000,000 | $1,000,000/$2,000,000 | $2,000,000 | $1,000,000/$2,000,000 |
| Products and completed operations aggregate limit | $2,000,000 | $1,000,000 | $2,000,000 | $1,000,000 | $1,000,000 |
| Advertising injury coverage aggregate limit | $1,000,000 | $1,000,000 | $2,000,000 | $1,000,000 | $1,000,000 |
| Tenant’s legal liability coverage limit | $300,000/$1,000,000 | $300,000 | $100,000 | $100,000 | $1,000,000 |
| Waiver of subrogation included? | Yes | No | Included | Can be included | No |
| Hired/non-owned auto liability coverage included? | Yes | No | No | Can be included | Can be included |
| Equipment breakdown floater included? | No | Yes | Yes | Can be included | Can be included |
| Can you get a certificate of insurance online? | Yes | Yes | Yes | Yes | Yes |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
| Deductible | $0 | $0 | $0 | $0 | $0 |
General liability insurance for travel companies covers claims of bodily injury, personal injury, and property damage caused by your business operations. Some examples of when to use this travel agent liability insurance policy are listed below:
A customer slips and falls while in your travel agency office
Your business is sued because you are accused of stealing a marketing idea
An employee of yours fails to book a flight for a customer, causing them to miss a trip
Travel agencies might want to add coverage for liability related to employment-related practices. This protects your company against claims of wrongful termination and invasion of privacy by an employee.Â
Another add-on to consider is product liability insurance. This protects your company when a product you sell causes bodily injury or property damage to a customer or member of the public.
Typically the coverage limits for general liability insurance are $1 million per occurrence and $2 million.
Yes, they still need general liability Insurance for independent travel agents. Independent travel agents can work from anywhere and act as any other travel agency does. This means they can be exposed to the same types of liability that you would want general liability for.
| CoverWallet | NEXT | Thimble (Best) | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $1,000,000 | $1,000,000 |
| Aggregate limit | $2,000,000 | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000 | $2,000,000 |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
| Waiver of subrogation included? | Yes | No | Yes | Can be included | No |
| HIPAA coverage included? | No | No | No | No | No |
| Sexual misconduct coverage included? | No | No | No | No | Can be included |
| License defense coverage included? | No | No | No | No | Can be included |
| Deductible | $500 | $500 | $500 | $50/$10,000 | $500 |
Travel agent professional liability insurance protects your travel agency business against mistakes that you or your travel agents may make on the job. Some examples of when to use this policy include:
Your agent fails to inform a customer about a travel condition, causing them to miss their trip
An agent lost some important documents a customer needs to successfully book a tour
e&o insurance for travel agents is another name for professional liability insurance. This means that the best e&o insurance for travel agents offers identical coverage to your standard professional liability policy. It will cover your business against claims of negligence and mistakes to its customers. These claims can result in lawsuits from any bad advice your travel agents might give.
Professional indemnity insurance for travel agents is yet another name for professional liability insurance. Professional indemnity insurance for travel agents can also be called travel agent e&o insurance. All of these policies cover perils and incidents that are caused by a mistake as well as the business from claims of negligence, inaccurate advice, breach of contract, and other covered perils.Â
Travel agent errors and omissions insurance typically has a $1 million per occurrence limit. This means that the insurance company will pay up to $1 million to cover any single claim. It also has a $1 million aggregate limit, meaning that during the policy's lifetime, the insurer will only contribute up to $1 million to cover all claims.
Travel agency business insurance programs will sometimes utilize public liability insurance policies that protect your business against claims by the general public. Examples of when these policies will be helpful include:
A person from the general public trips and hurts their leg in your travel agency office
Someone says that your travel agency has invaded their privacy through its operations
Your travelers insurance company will offer a public liability coverage having a $1 million-$2 million per occurrence and aggregate limit.Â
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| CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Building coverage limit (minimum) | $50,000 | $260,000 | $25,000/$500,000 | $25,000 | $60,000 |
| Contents coverage limit (minimum) | $50,000 | $22,000 | $25,000/$500,000 | $25,000 | $60,000 |
| Outdoor signs | Excluded | $2,500 | Excluded | Excluded | Excluded |
| Accounts receivable | Excluded | Excluded | $5,000/10,000 | Included | Excluded |
| Money and securities | Excluded | $2,500 | $1,000 | Included | Excluded |
| Lock and keys | Excluded | $2,500 | Excluded | Excluded | Excluded |
| Business interruption floater | Excluded | Included | Included | Included | Excluded |
| Equipment breakdown floater | Excluded | Included | Excluded | Excluded | Excluded |
| Inland marine insurance floater | Excluded | Excluded | $10,000 | Excluded | Excluded |
| Employee dishonesty floater | Excluded | $5,000 | $2,500 | Included | Excluded |
Travel agent insurance coverage with a commercial property policy allows your business building and business personal property to be protected from damage. This policy will help you with the costs to pay for or repair damaged property due to physical events. Times to use this policy include:
Your travel agency office gets burned, and you lose electronics and company documents
Someone breaks into your travel agency commercial business and steals company assets
Commercial property insurance has an average coverage limit of $60,000 for small businesses. This coverage limit is determined by the value of your building and business personal property that needs protection.
Travel agencies may want to get earthquake insurance, depending on where they are located. Earthquakes and landslides can be devastating sources of financial damage that is typically excluded from the average policy.
Another add-on to consider is business interruption insurance. While commercial property protects against physical damage, business interruption protects from the consequences of that physical damage, like moving costs, lost income, and more.
No, commercial property insurance does not cover everything. First, you will only be covered up to your coverage limit for any damages. Second, any property damage due to negligence or intentional harm on your part will not be eligible for this policy.
