Travel Agency Insurance
A travel agent has a duty of care to advise their clients on which destinations they would most enjoy through utilising their expanse knowledge of tourist attractions or rural locations. Not only do they book the holiday, but they are responsible for ensuring that the entire trip goes smoothly, from the flight to the accommodation to the legal requirement concerning travelling.
Due to this long list of obligations, one can be expected to make a mistake or become an accident victim. Still, if this causes financial loss to the customer, travel agency insurance should be acquired to help minimalise the expenses of compensating the affected parties.
Types of Travel Agency Insurance
Public liability insurance
Public liability insurance can protect a travel agency from claims that their actions or services physically injured a third party or damaged their belongings. Customers are not the only people this refers to, as any passers-by or people that walk into the building may be affected. For instance, if a potential client attempted to enter but tripped on the unstable steps leading up to the door, a bodily injury may be caused, which requires medical attention.
In the same way, if a client was in the middle of their appointment and asked for a coffee, which was accidentally dropped on them when being served, their phone could be damaged from the liquid and need replacement. Public liability insurance can reimburse the customer for the costs of this and pay their medical bills, too; this insurance is encouraged because it covers a wide range of circumstances under the policy, as proven by the majority of businesses that utilise it.
Professional indemnity insurance
Professional indemnity insurance is prevalent in industries where one mistake can cost thousands of pounds, just like a travel agency is responsible for booking their customers’ holidays and keeping their confidential records private and safe. Suppose a travel agent performed an act of negligence, for example, typing in the passport number of their customer incorrectly.
In that case, this could cause significant issues at customs and accordingly, the client may not be allowed to board the place. In this scenario, lots of money and time would be lost, and the client would need to be reimbursed, which the insurance would cover. Moreover, if they wanted to sue the travel agency for this error, legal fees would also be expensive and harmful to the business growth.
Yet, when covered by insurance, the impact would be nominal. For most insurance companies, cyber insurance is not included in the policy. It must be negotiated, meaning that any information lost due to a virus or malware attack cannot be restored via insurance.
Cyber insurance, as aforementioned, can protect a travel agency should any of their data be breached. Employees store sensitive information about the client, like their address and credit card information, when paying for holidays and collecting personal data. If, for instance, they clicked on a link that opened a virus leading to a malware attack, this valuable information may be stolen.
Expenses must be spared for notifying all affected clients that the information they gave out was compromised and should be protected immediately, in addition to the costs of purchasing a new software.
Insurance companies often include extra helpful services to combat cyber-attacks and promote safety, although this must be checked. Such services may include a 24/7 online chatroom to communicate with experts for advice on computer safety and monitoring devices that detect any unusual activity and notify the travel agency if there is irregular behaviour.
Employers’ liability insurance
Employers’ liability insurance is the most necessary form of travel agency insurance as several employees work there, making it a legal requirement. Failure to do so may result in £2,500 daily fines until the insurance is obtained with a minimum of £5 million covers, so it is wise to check with the business manager and ensure that this cover is acquired for all employees.
Essentially, it safeguards both the company and staff from claims that an accident caused a physical injury to one of the employees in the worksite and provides a lump sum for the lost income whilst they recover from the said incident. In the same way, it can cover the majority of the medical treatment needed, as long as the event happened at work.
Examples could include anything from tripping over a loose floorboard in the office to repetitive strain injury from working with a computer all day and overusing the same muscles, leading to nerve pain or worse.
Travel Agency Insurance
In conclusion, travel agency insurance can be a variety of covers depending on what is best suited for the company. It can protect the workers and clients from financial loss due to unpredictable accidents.
Find out more about the importance of insurance here.
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