Tour Operator's Liability insurance
Why do I need Tour Operator’s Liability insurance?
Tour Operators and travel agents are responsible for the ‘proper performance of the contract’, this means they can be held liable if aspects of the trip or holiday don’t go to plan, which can include the actions or inactions of subcontractors & suppliers.
What should my insurance cover?
Many policies can be extended to include a range of benefits such as:
Payment of fines & penalties
Payment of ransoms & extortion
Cover for lost or disrupted income
Cover for physical injury/damage
The cost of phone hacks
Cost of notifying your contacts
Incidents at your outsourced service providers
Social media risks
Tour operator’s liability insurance, or travel agent insurance, is designed to defend tour operators if they are accused of failing to supply what the customer was expecting or if something goes wrong on the trip for which the traveller holds you responsible. There are several benefits to having tour operators liability insurance, including:
Protection against Liability
Travel agencies handle various aspects of travel arrangements, including booking flights, accommodations, and activities. The agency could be liable if something goes wrong during the trip, such as flight cancellations, lost luggage, food poisoning, double booing, or accidents. Travel agency insurance protects against lawsuits and claims for negligence, errors, or omissions in their services.
Client Confidence
Having Tour Operator’s Liability insurance demonstrates professionalism and gives clients confidence in the travel agency’s ability to handle any unforeseen issues. Clients are more likely to trust and choose an insured travel agency, knowing that their interests and investments are protected.
Compliance with Regulations
In many jurisdictions, travel agencies must have insurance coverage to operate legally. Tour operators and travel agents in the UK must comply with the Package Travel Regulations, and having the necessary insurance policies ensures compliance with regulatory requirements and avoids potential penalties or legal consequences.
What does travel agent insurance cover?
A good tour operator’s liability insurance policy will combine professional indemnity with public liability, so claims for errors, financial losses, and claims for injury, illness, or damage can be covered. So whether you mis-book accommodation or a customer is injured on an excursion, your policy will assist you.
Package Travel Regulations will advise you if you must also protect your client’s money with insurance, a bond or a dedicated bank account. If you are arranging flights, you should also obtain an ATOL bond.
