Why do I need Tour Operators Liability insurance?

Tour Operators and travel agents are responsible for ‘proper performance of the contract’, this means they can be held liable if aspects of the trip or holiday don’t go to plan, which can include the actions or inactions of subcontractors & suppliers.

Tour operator’s liability insurance, or travel agent insurance, is designed to defend tour operators if they are accused of failing to supply what the customer was expecting, or if something goes wrong on the trip for which the traveller holds you responsible. There are a number of benefits to having tour operators liability insurance, including: 

Protection against Liability

Travel agencies handle various aspects of travel arrangements, including booking flights, accommodations, and activities. If something goes wrong during the trip, such as flight cancellations, lost luggage, food poisening, double booing, or accidents, the agency could be held liable. Travel agency insurance provides protection against lawsuits and claims for negligence, errors, or omissions in their services.

Client Confidence

Having Tour Operators Liability insurance demonstrates professionalism and gives clients confidence in the travel agency’s ability to handle any unforeseen issues. Clients are more likely to trust and choose a travel agency that is insured, knowing that their interests and investments are protected.

Compliance with Regulations 

In many jurisdictions, travel agencies are required to have insurance coverage to operate legally. Tour operators and travel agents in the UK must comply with the Package Travel Regulations, and having the necessary insurance policies ensures compliance with regulatory requirements and avoids potential penalties or legal consequences. 

What does travel agent insurance cover?

A good tour operators liability insurance policy will combine professional indemnity with public liability, so claims for errors and financial losses can be covered as well as claims for injury, illness or damage. So whether you mis-book accommodation or a customer is injured on an excursion, your policy will be there to assist you.

Package Travel Regulations will advise you if you also need to protect your client’s money with insurance, a bond or a dedicated bank account and if you are arranging flights you should also obtain an ATOL bond.

We understand that every business is different & can advise what insurance you do, and do not, need