Running a travel agency can be exhilarating and rewarding, but it also carries risks. Every business owner should look into the insurance coverage options necessary for their business before opening shop. Insurance protects you against possible errors and harm caused by negligence, mistakes, or accidents on the part of your employees. Read on to understand more about travel agent errors and omissions insurance.


Dangers in Traveling

A sunlit vacation to the Pacific Islands may seem anything but dangerous, but you can never tell when trouble may arise during a vacationer’s trip. But what happens if a customer suffers bodily harm after an assault on the way home to her hotel? You’re just responsible for arranging her tickets and hotel reservations, right? Wrong. You could be sued for not Hi_MYK_33595855_MYK-074correctly informing your clients about the dangers of areas into which you send them. What about an upset passenger who sues your agency for emotional distress because of a nonexistent flight you booked for them, thanks to a glitch in your system that didn’t recognize the flight’s discontinuation? Yep. It’s possible. As a travel agent, you are responsible for myriad aspects of a client’s travel and stay. How about a customer that finds a mouse in their hotel room and sues because of the unsatisfactory conditions of her room? That’s not just the hotel that bears the responsibility—not if you booked it. As you can probably tell, there are countless possibilities that could make an insurance policy necessary to your business. You can’t afford to take risks; Travel agent E&O insurance is a must.


What Exactly Does E&O Cover?

Your travel agent E&O policy essentially covers legal costs, such as settlement costs (up to a certain amount as dictated by the policy you select) and court costs. While every business typically gets a general liability insurance policy, E&O insurance is necessary to protect your company against claims relating to contractual agreements, performance, and employee errors. With the legal system the way it is today, any lawsuit, no matter how baseless, will cost you time and money. Even if your business performs impeccably and provides flawless services, you will need coverage in the event that the one unsatisfied customer you’ve ever had decides to sue. You should consider a coverage that covers not only yourself as the business owner but your employees and subcontractors.


Other Things to Consider

There are other considerations to keep in mind as you choose the best insurance policy for your company. If you speak with a registered, professional insurance agent or firm, you can get more information about policies and policy packages that will cover all your bases. For example, do you offer worldwide travel packages or just domestic? That will affect the kind of insurance coverage you pay for. You should also consider how E&O insurance works with your general liability insurance, property insurance, and personal injury claims. Whatever you decide, don’t neglect to secure travel agent errors and omissions insurance for your travel agency. Bon, voyage!

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