Travel Agency Insurance: Cost & Quotes

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Updated: March 26, 2025 . 6 min read

Written by Ofir Sahar

CEO & Founder

Ofir Sahar

CEO & Founder

Some of the products on this page come from partners who may compensate us when you click on their links or take specific actions. This helps us keep our content free. That said, our opinions are our own and based on independent analysis.

 

 

When running a business in the travel sector, it is always important to ensure your firm is safeguarded against any risks that may arise. Travel agent insurance includes all the insurance policies that are designed to protect the tour operators or the travel agent from loss of income as a result of specific unfortunate events.

This article looks at travel agency insurance in relation to its costs, the types of coverage available, and the quotes for different agencies in the travel industry.

Business Insurance for Travel Agents

Travel insurance agents are always under pressure because a single mistake can have major financial consequences. Travel agents typically include several items in their business insurance coverage such as:

  • General Liability Insurance: This is to protect the business against claims arising from bodily injuries or property damages, which happen on its premises or in the course of providing its services.
  • Errors and Omissions Insurance: Such insurance is important to protect against claims making errors as specialists. For example, if a client is wronged as a result of booking errors, this type of insurance covers the costs of litigation and settlement.
  • Property Insurance: Protects from risks of loss caused by damage to business property such as office furniture, equipment and basic supplies.
  • Workers’ Compensation: Required in most entities where you have employees, it provides coverage of medical costs and lost income for employees who sustain work-related injuries.
  • Cyber Liability Insurance: Given the growing use of technology in travel organizations, there is a need to safeguard client information from unauthorized access. This insurance covers the expenses of data breaches or other forms of cybercrime.

On average, for comprehensive coverage small travel agencies pay between $400 and $1,500 annually.

 

Travel Agency Liability Insurance

Travel agency liability insurance is necessary to indemnify the agency from claims for damages or injuries that result from the agency’s activities. Some of the aspects include:

  • Public Liability Insurance: This covers injuries and property damage suffered by clients or any other third parties who in some way are affected by business activities. For example, if a client trips over tables in your office, this policy would take care of the legal expenses in relation to their claim.
  • Product Liability Insurance: In case the agency sells travel packages or products such as travel insurance, there will be claims regarding such products and this insurance covers against all such claims.
  • Employer’s Liability Insurance: If you have staff, this is usually more of a legal qualification and covers claims of employees who get injured or sick due to work they do for the company.

Liability insurance -is accessible more so if a person opts for the cheapest type that would start insurance premiums at $4.74 for basic cover. However, when more cover is desired the premiums will rise.

  

Errors and Omissions Insurance for Travel Agents

Based on its title, errors and omissions insurance is specific to travel agents. It provides cover for any failure or mistakes in the provided services and claims arising therefrom.

Some instances where E&O insurance would apply are in cases such as:

  • Clients suffer financial loss because of booking errors.
  • Travel arrangements are provided and incorrect advice is given.
  • Services or products which were promised are not provided.

E&O insurance has a wide range of costs; some have been in the business longer, have more employees and claims, some don’t. On average, this type of coverage may cost between $150 to $2000 or more annually for travel agents.

 

Best E&O Insurance for Travel Agents

When it comes to determining the best errors and omissions insurance, it’s vital to check out various providers. Examine the options they offer, the rating they have earned from their clients and their cost premiums. Some of the insurers worth consideration in this area include –

  • Hiscox: It has developed special policies to E&O for small businesses engaged in offering travel services.
  • The Hartford: A company known for a variety of coverage alternatives and always rated well for their customer service.
  • Insureon: Offers a service that enables users to check various insurers and select the best offers available.

Another area of concern while choosing an E and O policy include –

  • Coverage limits: Be sure to have enough limits that meet your business needs.
  • Exclusions: Be sure to know what is not provided for in the policy.
  • Claims process: Use insurers who have simple claims processes.

  

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Professional Indemnity Insurance for Travel Agents

Errors and Omissions (E&O), or professional indemnity insurance, is a term that is commonly used but depending on the policy may cover other aspects as well. Such type of protection is essential for every professional service and this includes a travel agent. It caters for:

  • Costs of defending lawsuits that claim one is negligent or provided poor services
  • Payments made to the clients as compensation for service related complaints.

The fact that you have professional indemnity insurance gives the clients peace of mind as it shows that you will take responsibility for your professional services

 

Travel Agent Insurance Cost

The prices for travel agent insurance depend on several factors, which include the following:

Type of Coverage: Based on their coverage options, the insurance types (general liability vs. E&O) come with different premiums.

Business Size: Usually larger agencies or those with more employees are expected to pay higher premiums.

Location: Due to local regulations and risk factors, some regions are more expensive than others.

Claims History: Higher rates can be charged to an agency that has previously been insured by an agency that had claims; this is because such an agency is considered a higher risk.

Looking for the type of figures required, it is also fair to assume that on average small travel agencies will be subject to the following annual premiums:

  •  General Liability Insurance – costs on the average between $400 – $1,000
  • E&O Insurance – costs on the average range between $150 – $2000
  • Workers’ Compensation – Varies significantly based on the employee numbers and state laws

To get an accurate quote depending on the individuals’ requirements, try and obtain several quotes from several insurance companies.

 

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The following is a table displaying the cost of different types of travel agent insurance:

Type of Insurance Annual Cost (USD)
Professional Liability Insurance (E&O) $150 – $2,150
General Liability Insurance $400 – $1,000
Workers Compensation Varies by state
Cyber Liability Insurance $300 – $1,000
Property Insurance Varies depending on value

 

 

Conclusion

Insurance is certainly a vital tool for any travel agency concerning the travel business. Since there are varieties of travel agency insurance coverage the agents need to follow what best meets their requirements.

 If you are interested in learning more about the specific insurance policies that would suit your agency or if you simply want to compare quotes, contact Insuranks today to get assistance.

 

 

About the author

Ofir Sahar

Ofir is the founder and CEO of Insuranks. He established Insuranks in 2019 from scratch and has been running educational insurance websites since 2009 on a mission to help businesses...See full bio.

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