2014

Insurance Policies Travel Agents Must Know

As someone who plans other people's air travel and accommodation, you absorb a lot of liability. To protect your business from lawsuits, property damages, and other costs, you need to know these insurance policies…

General Liability Insurance for Travel Sites and Travel Agencies

General Liability Insurance pays for a variety of lawsuits that your travel agency may face.

General liabilities are the situations involving third parties (people not employed by your business) that could lead to lawsuits. General Liability Insurance pays for lawsuits when…

  • A mail carrier or deliveryman falls on your property and is injured (or other personal injury lawsuits).
  • A customer trips, walking into your office and damages their laptop (or other lawsuits over damaged property).
  • A competitor or airline sues your business for using its trademark or copyright on your website (advertising injury lawsuits).

These and other lawsuits can be covered by your General Liability Insurance, which can pay for many of the expenses involved with legal action, including…

  • Lawyers / paralegals.
  • Settlements.
  • Judgments.
  • Court costs.

When a customer slips on your wet floor on a rainy day, the legal costs could be overwhelming. Juries may award your customer a judgment for their injuries and pain and suffering, which can end up costing five figures or more. Many lawsuits settle outside of court. This amount, the settlement, can also be covered by your insurance and prevent your business from having to deal with the hassle of a lawsuit.

Property Insurance for Holiday, World Travel, and Other Travel Services

To cover your equipment, inventory, supplies and other property, your commercial Property Insurance can reimburse you when this property is lost or damaged by…

  • Burglary.
  • Vandalism.
  • Office fires.
  • Tornadoes.
  • Non-major storms, like winter storms, windstorms, and rainstorms that are not given a first name by the National Weather Service.

Property Insurance can cover your…

  • Computers.
  • Office space.
  • Buildings.
  • Tools, supplies, and inventory.

If a tornado smashes your windows and tears down one of your office's walls, you could be looking at major expenses for rebuilding and repairing your property. In addition, the equipment and other property inside your building may have been damaged by the rain and debris.

When this happens, Property Insurance covers your business in two ways…

  • Reimbursements for lost or damaged property.Your insurance company can send your business money to repair its property and / or buy new equipment to replace what was damaged.
  • Business Interruption coverage. This coverage is insures your income and relocation costs. Tornadoes, fires, and storms can damage your business's property and make it impossible to work there. If that happens, your insurance can cover the income you lose and pay for you to relocate to a temporary office.

Business Owner's Policies for Air Travel and Travel Tour Agents

Business Owner's Policies, also called BOPs, are lower-cost business insurance packages for travel agents and other small businesses.

BOPs package General Liability Insurance and Property Insurance together and can cost less than what you would normally pay. The discount with these insurance policies comes from the fact that insurers only sell them to "lower-risk" businesses.

Many small businesses meet the requirements for this insurance because they…

  • Have fewer than 100 employees.
  • Don't operate in large-scale premises or dangerous industries.
  • Don't need more than 12 months of Business Interruption Coverage.

Our agents work with top rated insurance companies to see if your business qualifies for this or other discounts. Fill out our online application, and we can include a BOP as part of your free insurance quote.

Cyber Liability Insurance for Travel Agents

Cyber Liability Insurance (also called Cyber Risk Insurance or Data Breach Insurance) is a vital part of protecting your travel agency because of the credit card data you have for your client's airfare and accommodations.

Cyber Liability Insurance can pay for your business's response when a hacker breaks into your business to steal personal and financial data. Covered costs include…

  • Credit and fraud monitoring services for your clients and other people whose data may have been hacked.
  • Crisis management and additional personnel to help your business contact your customers, explain the security breach, or perform other important aspects of your response.
  • New advertising and P.R. campaigns to rebuild your travel agency's reputation with your clients.
  • Investigations to determine how someone hacked into your network and who was responsible.

These costs are all included with a First Party Response policy, which can be added as an endorsement to your General Liability policy. If you have any questions about whether Cyber Liability is right for your business, don't hesitate to contact one of our agents.

Travel Agency Insurance: Errors and Omissions Coverage

Every business has unique professional liabilities.Errors & Omissions Insurance (also called Professional Liability Insurance or E&O Insurance) cover the liabilities travel agencies face because of the work they perform.

As a travel agent, you could face lawsuits about the travel services you provide. If the cheap accommodations you found for a couple traveling to India ended with one of them contracting malaria, your business could be sued.

E&O Insurance pays for lawsuits when your customers sue your travel agency over…

  • A travel experience different than what you advertised.
  • Mistakes you made with someone's travel.
  • Wrong bookings or accommodations that were unsatisfactory.
  • Negligence in professional responsibilities.

A lot can go wrong on when you travel. The unpredictability of traveling is both its charm and its danger. Because you can't control every aspect of your clients' travel, you'll want to protect your business from lawsuits about the travel services you sell them.

Workers' Compensation Insurance for Travel Sites and Travel Agencies

Among other costs, Workers' Compensation Insurance (also called Workman's Comp or Workers' Comp) pays for…

  • Employee medical expenses (e.g., ambulances, hospital stays, and surgeries) when they suffer a workplace accident, injury, or illness.
  • Medical leave for employees who are unable to work following an illness or injury.
  • Your legal expenses when an employee sues the business for a Workers' Comp injury.

As an employer, you're may be legally obligated to purchase this insurance if you have W2 employees. Each state sets its own requirements, so we can't generalize about what coverage you need or the various exceptions you might qualify for. But our agents can help you find coverage that adheres to state laws and suits your budget.

Travel agents may have a less dangerous workplace than factory workers or police officers, but you're still susceptible to many Workers' Comp situations.

Here's a common one. While walking into work one morning, your employee slips on an icy spot in the parking lot. They fall and tear their ACL. The MRI, surgery, rehab, and other costs can easily end up to between five and six figures. If the employee sues your business, the lawsuit could multiply that expense.

As it pays for both medical and legal expenses, Workers' Comp is important for any business looking to avoid being saddled with those cost burdens.

Insureon: Custom-Built Small Business Insurance for Air Travel and Travel Tour Agents

Our agents can customize an insurance plan for your travel agency. And we'll build this plan for free. Fill out our simple online insurance application and receive a free, custom-tailored insurance quote.

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