There are liability risks particular to the travel industry, which is why we offer custom General Liability, Property, Professional Liability, Business Auto and other insurance policies to travel agencies. A lot can go wrong when assisting clients with their travel plans, itineraries and booking airline and train tickets, hotels, car rentals, tours, and cruises.
Travel agencies may face lawsuits if customers or other visitors to the premises are injured. Customers, delivery people and maintenance workers may suffer injuries as a result of trips and falls, contact with sharp objects, or toppling displays. General Liability Insurance covers the medical costs of anyone suffering a serious injury and the defense costs if a lawsuit is filed.
Anything can go wrong when traveling, from overbooked airlines to unsatisfactory hotel accommodations. Clients can sue over problems that arise whether or not the problems can be attributed to the travel agent’s lack of attention to detail or negligence. For instance, a customer can claim that their travel experience did not mirror what was advertised. Or, maybe the hotel the agent booked was located a far distance from the events and places on the client’s itinerary. The clients can sue stating they spent unanticipated money and time traveling to and from the hotel. E&O Insurance covers the cost of defending against a lawsuit and compensates dissatisfied clients.
Travel agencies will typically have minimal business auto risks. Liability usually results when employees run errands for the office and get into accidents. However, if travel agencies host tours where bus or other vehicle travel is included, they could be held liable should an accident occur.
If workers complete all work activities in the travel agency’s office, the Workers’ Compensation risks are low. The risks are typical of those in most offices such as repetitive motion injuries, falls, and muscle strains from lifting heavy objects. However, if travel agents and their employees leave the office for work-related purposes, the chance of an injury occurring is greater.
A fire in a travel agency office can occur in the event of a power surge, lightning, faulty wiring or overheating. If a loss occurs during travel season that prevents the agency from doing business, business income losses can be high. Lost income can be claimed during the period when business cannot be conducted. Damage to property can also be caused by severe weather such as tornados or hailstorms. And any damage done to the premises in the event of a burglary would also covered by Property Insurance.
Employees of travel agencies may use the company to take unauthorized trips or steal money from their employer. Losses resulting from employee theft and embezzlement of money and securities are covered by a Crime Insurance policy.