Why You Need Travel Agency Insurance In 2022
By Maria Hickey on August 27th, 2022
Travel agencies operate just like other businesses in the UK and need to have industry-specific business insurance to cover themselves from risks associated with the industry. This comes in the form of travel agents insurance that can be personally tailored to meet your needs.
No matter if your travel agency provides all-inclusive services or you are an independent travel agent offering luxury personalised holiday experiences, you will need the appropriate protection to cover your commercial risks, such as coach trip insurance for tour operators and more.
In this guide, we look at what insurances are available to travel agents and how they protect your business from accidents and disasters that are out of your control.
Why Do Travel Agents Need Professional Indemnity Insurance?
Professional indemnity insurance offers essential protection to any company that provides professional services. Travel agents fall into the service industry category because it is your job to deliver high-quality, reliable services to your customers.
Like other professional businesses, travel agents rely on building and maintaining a strong reputation that includes honesty, transparency, and a high level of personal care and safety. Professional indemnity insurance covers things like liability claims, property claims, neglect, error, omission, and malpractice.
Having professional indemnity insurance for travel agents in place can give you and your staff great peace of mind. It can enable you to focus on getting business done without the stress and worry of potential legal battles hanging over you. It also projects the right professional image for your travel agency that will help to reassure customers booking with you that you take your business seriously.
Why Do Travel Agents Need Errors & Omissions Insurance in 2022?
Errors & omissions insurance (E&O) for travel agents covers you for any professional errors you make, or a customer accuses you of. For example, any mistakes made when booking transports or connecting flights. Or mistakes made when booking a passenger onto a cruise liner on the wrong date or to the wrong destination etc.
Mistakes happen, and while they are not intentional, if your customer suffers as a consequence of a simple error you make, they are perfectly entitled to make a claim for compensation against you.
E&O insurance covers you against things like:
- Inaccurate advice
- Misrepresentation
- Negligence
- Professional errors and mistakes
Even if you are sure you are not to blame, it won’t stop a disgruntled customer from suing you. The resulting lawsuit can be time-consuming and cost a fortune in legal fees, so your E&O insurance will cover your expenses for legal fees, hiring a lawyer, and paying compensation should the claim go in the claimant’s favour.
Why You Need Public & Employers’ Liability Insurance
Public liability insurance keeps your business safe from claims from customers or members of the public who suffer an injury on your premises. For example, a customer slips and falls on a wet floor when entering your travel agency.
Your public liability insurance will also protect you should a customer’s personal possessions get damaged. For example, if they catch and tear the sleeve of a leather jacket on your door handle as they enter or exit your agency.
This insurance covers you against any accidental customer data loss or breach that directly impacts your customer. For example, they have had their ID and financial information stolen and used to commit fraud.
Employers liability insurance
Employers’ liability insurance is required by law under the Employers’ Liability Act, 1969. So if you employ staff in your travel agency, you will need to get this coverage. This insurance protects your business from claims made by your staff for compensation should they become ill or get injured due to working for your travel agency.
Employers’ liability insurance will cover you for damages, compensation costs and legal fees that a current or ex-employee can claim, even if they have left your company. If the claimant can prove that their illness or injury was caused while working for your travel agency, they can sue you for compensation.
It is essential to realise that all staff working in your travel agency under your management are considered your responsibility according to law. Even if you hire volunteers or work experience staff, you are legally obliged to have them covered by employers’ liability insurance. If you don’t, you could face fines of £2,500 for each day you aren’t correctly insured.
Commercial Property Insurance for Travel Agencies
Travel agencies are a popular staple of the British high street. There is nothing like gazing at warm, sunny and exciting destinations displayed in your shop window on a cold and rainy day in the UK.
However, just like any other high street shop, your travel agency needs to have commercial property insurance included in your policy to protect your business premises. This can consist of business building insurance if you own the property where you operate your travel agency from, as well as contents insurance to protect your shop fixtures and fittings.
Building’s insurance will cover your repair and rebuild costs should your business premises be damaged or destroyed by disasters such as fire, flood or storm damage.
You can get combined buildings and contents insurance coverage in your policy, and it is essential to consider what you would need to replace in the event of a disaster. Your contents insurance will cover things such as your shop furniture, fixtures, fittings, soft furnishings and decorations, and the business equipment you need to do your job.
When working out what needs to be covered by your insurance, be sure to include things like:
- Built-in cupboards and desks
- Carpets
- Curtains and window blinds
- Kitchen equipment and electrical goods
- Office chairs and seating
- Plumbed-in items like sinks and toilets
- Skirting boards
Your commercial property insurance for travel agents will also cover you against the damage caused by vandalism and theft of your electronic equipment that is essential for your work.
What if I rent the premises?
You can get commercial property insurance to protect your travel agency business even if you don’t own the business premises you operate from. It would help if you spoke with your landlord or the commercial property owner to find out what insurance they carry.
Commercial landlords tend to be responsible for having buildings insurance that will cover the costs of repairs and rebuilds to the structure of their property should the worst happen.
However, their insurance may not cover all aspects of the property. For example, many commercial property owners allow their business tenants to replace their shop windows with something more fitting for their individual business.
In this case, you may need to take out extra shop-front insurance to protect your business. This will help cover the costs of repairing or replacing broken shop windows and doors.
Conclusion
There are many things to consider when arranging travel agency insurance for your business. It can feel a little overwhelming to ensure you have covered everything you need to protect, including your company reputation, property and business assets. Expand your knowledge of business insurance and learn about the different coverage options available at Brisco Business.
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