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From booking other people’s accommodations to planning their entire holiday itineraries, these are just some of the responsibilities that travel agents face. And as a result, mistakes are very easy to make, which can put the travel agent in financial and legal trouble.
To protect the financial standing of your travel agency, it’s essential that you take out all the necessary insurance policies, so that when a mistake is made - rather than paying out of pocket - the insurance company will step in and cover the costs.
How Much Does Travel Agent Insurance Cost?
Every travel agency in the U.S. pays a different amount of money for its insurance. This is because the premium can vary greatly depending on various factors including the size of your agency, the trips and holidays the agency sells, the number of staff your business employs, and other similar variables.
The average travel agent in the U.S. pays around $40 every month or $480 per year on business owner’s insurance, which is a policy that combines travel agent liability insurance with commercial property insurance.
Another important policy for travel agents is general liability insurance. You can get this policy for around $30 every month or $360 a year. It will protect your business from claims and lawsuits related to third party bodily injuries and property damage.
As mistakes during the booking process are likely to be the most common reason why your travel agency may be sued - getting travel agent professional liability insurance is essential. This policy costs around $40 every month or $480 per year, and that will protect the financial standing of your business in case you are accused of professional mistakes, negligence, or malpractice.
If your travel agency employs travel agents - worker’s compensations insurance will be legally required. You can expect to pay around $50 per month or $600 per year for the policy. It’s useful as in case a staff member falls sick or gets injured at their place of work - the insurance company will compensate your employee financially for any lost wages as well as medical and hospital bills.
What Types of Insurance Do Travel Agents Need?
Travel agents can benefit from various different insurance policies. Typically - the level of coverage you need to take out for your travel agency will depend on the size of the business, the services and holidays you sell, the number of staff you have employed, and other similar factors.
Please take a look below to explore some of the most popular travel agent insurance policies below:
Why Do Travel Agents Need Insurance?
Typically - every travel agent in the U.S. can greatly benefit from getting insurance. At the end of the day - all insurance does is keep the finances of your business safe in case you get sued.
And while there are many things you can do to minimize your company’s exposure to risk - mistakes such as accidental or wrongful bookings and property damage due to vandalism, poor weather conditions, and theft can be out of your immediate control.
In other cases - depending on the law in your state - some travel agents are required by law to take out a certain level of cover before they are allowed to operate and sell holidays on behalf of tour operators.
Whatever the case might be - getting your travel agency insured from all angles is going to lift a tremendous amount of pressure from your shoulders should the unfortunate happen.