Travel agencies that have ever been involved with a lawsuit that came about due to an error or omission by one of the travel agents that worked there can attest to the importance of travel agent E&O insurance. These types of policies generally cover the travel agency for cases of bodily injury, property damage, financial loss, and personal injury.
You may try to protect your agency with all possible legal means, but even having the person sign a waiver that limits your company’s responsibilities for the safety of the person and the responsibility that the vacation you have helped them to book comes off as planned may not protect you from a lawsuit. Even an unsuccessful lawsuit against your travel agency can have terrible financial impacts that drive you out of business.
Out of Your Control
It is easy to book vacations and offer people the option to participate in certain activities, but you cannot guarantee that any one company will be in business when the person gets to where he or she is going. The economy and business practices of the company over which you have no control will determine whether or not that company remains in business. Unfortunately, if the person has booked a tour to Antarctica from Tierra del Fuego through your agency, and the tour doesn’t happen or he or she gets hurt on the tour, you may be sued for damages. That is one reason why insurance can be important.
Financials in Court
With the right kind of travel agent E&O insurance, you can at least guarantee your business a fighting chance in the event that someone files a claim against your company for any of the four categories mentioned. Insurance companies tend to be better versed in the particular area of law that such lawsuits will concern, and that means better success at coming out on top. Beyond that, a good insurance policy will take care of everything in such a case, except for the testifying. That keeps you and your business out of the financial obligation when it comes to defending yourself in court.