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Travel agents perform a wide range of duties for their customers, any of which could result in a financial loss for that customer if not performed correctly.
Among other things, travel agents:
As a result of performing these kinds of services, travel agents face exposures to claims of negligence, error or omission. Key exposures include:
Everyone is human, so regardless of how thorough and professional you are, mistakes are bound to happen from time to time, either by you or by one of your employees. Having professional indemnity insurance gives you peace of mind, knowing your business and financial assets are protected in the event of a claim.
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A typical professional indemnity insurance policy will cover you for a range of things including:
A wide range of professionals take out Pl Insurance including doctors, lawyers, consultants, engineers, builders, IT professionals and also travel agents, whose particular needs are the focus of this article.
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:
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.
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.
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
Yes you can. Income protection is a seperate type of cover to indemnity. This type of insurance provides you with income replacement in the event of an injury or serious illness that leaves you unable to work.
Back to topQ: Why do I need PI insurance?
Q: What is a professional?
Q: What is the definition of negligence?
Q: How much cover do I need?
Q: How do I apply for PI insurance?
Q: What does Civil Liability Indemnity mean?
Q: What is a costs-inclusive excess and a costs-exclusive excess?
Q. What is the retroactive date?
Q: At what point should I notify my insurer about a circumstance that could possibly lead to a claim?
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.
Back to topAs can be seen, travel agents provide a wide range of services to their clients and in doing so, expose themselves to a variety of different risks. Therefore, professional indemnity insurance should be a key part of any travel agent's insurance portfolio, particularly now that the industry has been largely deregulated.
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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.
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