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Professional Indemnity Insurance for Travel Agents

Professional indemnity insurance for travel agents protects you if you make a mistake, are accused of negligence or sued.

What you need to know

  • As a travel agents you are at risk of being accused of failing to perform your duties.
  • Professional liability insurance can cover you for legal fees if someone tries to sue you.
  • If you are found to be negligent, Professional liability insurance can also pay for damages.

What does professional indemnity insurance cover?

  • Costs associated with court attendance and legal advice
  • Loss of monies for which you are legally liable
  • Negligence claims from errors or incorrect advice
  • Civil liability claims resulting from your business activities
  • Intellectual property rights infringements such as copyright or trademark breaches

  • Loss of documents for which you are legally responsible
  • Run-off cover to cover claims arising at a later date from a previous business or practice
  • Public relations expenses incurred in protecting your reputation, if damaged by a claim
  • Costs associated with official investigations and enquiries.
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Make sure you read the Product Disclosure Statement (PDS)
2022 Finder research shows that 23% of Australians can't be bothered reading the PDS. A PDS includes a comprehensive list of all the inclusions of a policy. Make sure you are covered for what you need.

How do I compare indemnity cover for travel agents?

The best way to find the right professional indemnity insurance is to compare a number of policies from different insurers. Some of the things you should look for when comparing include:

  • The amount of excess you must pay and whether it includes or excludes costs (legal fees)
  • Whether the policy includes run-off cover (cover for work you performed in the past)
  • Whether there are adequate reinstatements of the insured amount, in case you have more than one claim in a year
  • Whether the policy provides cover worldwide or only within Australia

  • Whether the policy provides cover worldwide or only within Australia
  • Whether the policy is specific to travel agents and clearly defines the exposures that are covered
  • What exclusions apply and whether they overly diminish your cover
  • The cost of the premiums and whether they reflect the cover provided
  • Whether the premiums are CPI-indexed to keep pace with inflation.

Consider an adviser

Professional indemnity insurance policies vary widely with insurers, so given that you will be seeking protection from claims that could run into the hundreds of thousands of dollars, it would be wise to seek advice from an insurance broker or your industry association, if you are at all unsure about what a policy contains.

Finder survey: How often do Australians of different ages compare or switch their professional indemnity insurance?

Response75+ yrs65-74 yrs55-64 yrs45-54 yrs35-44 yrs25-34 yrs18-24 yrs
once a year2.33%1.86%0.58%0.97%1.18%1.46%1.43%
I never compare or switch2.48%2.92%0.48%0.79%2.43%1.43%
once every 3+ yrs1.24%0.58%0.97%1.18%2.91%2.86%
every 2 yrs1.17%0.97%0.39%0.97%4.29%
more than once a year0.48%0.49%1.43%
Source: Finder survey by Pure Profile of 1112 Australians, December 2023

Will I need public liability cover?

Public liability insurance is usually offered at the time of taking out professional indemnity insurance. Why would a travel agent need it? The same reason as any professional who deals with the public, to protect themselves from claims of personal injury or property damage.

As a travel agent, you undoubtedly have a place of business and when clients visit you there, you are exposed to the possibility of them slipping, falling, tripping or any manner of accidents that could occur on your premises.

It will usually cover your business, including subsidiary companies and your employees, provided they are performing their normal duties at the time of an incident.

What is doesn't cover

It will not cover any unlawful activity on your part or deliberate acts of damage or injury. Public liability insurance is usually very affordable and is a must-have for any business that has dealings with the general public, including travel agents.

Find out more about public liability insurance

What is the Travel Compensation Fund (TCF)?

The Travel Compensation Fund (TCF) was a regulatory framework for travel agents introduced back in 1986 to compensate customers who suffered losses when travel agents went bankrupt and failed to provide refunds or equivalent travel arrangements.

It was replaced in 2013 by the Travel Industry Transition Plan, which aimed to phase out by July 2014 both the Travel Compensation Fund and compulsory licensing for travel agents.

The growth in online travel agents and direct bookings was seen to have reduced the relevance of the TCF and was unfairly disadvantaging local travel agents, whose online competitors were not subject to the same regulations.

The old system has now been replaced with a voluntary industry-operated and accredited system for travel agents and a consumer advocacy body to deal with consumer issues.

Given that the TCF no longer exists, professional indemnity insurance has never been more important for travel agents, as clients who suffer financial losses will now be seeking compensation through any means at their disposal.

IMPORTANT: Travel agents no longer need to be licensed or be member of the Travel Compensation Fund (TCF). If something does go wrong, only consumers who purchased products before 01/06/2014 will be eligible for compensation for their losses from the TCF.

Talk to a broker about professional indemnity insurance for travel agents

Frequently asked questions

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    This is where professional indemnity insurance shows its worth. This type of cover offers much-needed financial protection for nurses against claims of negligence or malpractice. It covers the cost of your legal defence as well as any compensation you may be legally required to pay to a third party. Public relations costs to repair your professional image are also covered by professional indemnity policies.

    In order to find the right professional indemnity insurance policy for you, compare policies at finder.com.au and seek advice from colleagues. Compare quotes from a number of insurers and seek help from an insurance consultant if required.

  • Public Liability Insurance and Professional Indemnity Insurance

    Want protection against liability and negligence claims? Find out why these two forms of cover are essential for many businesses.

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2 Responses

    Default Gravatar
    GregAugust 16, 2017

    Hi, I am looking for a quote on getting Travel Agent indemnity insurance. My business partner and myself both work independently from home. Would like to speak with an advisor please.

      Default Gravatar
      JonathanAugust 16, 2017

      Hello Greg,

      Thank you for your inquiry.

      You can fill out the form “Compare Travel Agent Professional Indemnity Cover” and click “Enquire Now” green button to have your details forwarded to a licensed insurance advisor.

      Hope this helps.

      Cheers,
      Jonathan

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