Tour Operator's Liability insurance

Why do I need Tour Operator’s Liability insurance?

Tour Operators and travel agents are responsible for the ‘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 several 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. The agency could be liable if something goes wrong during the trip, such as flight cancellations, lost luggage, food poisoning, double booing, or accidents. Travel agency insurance protects against lawsuits and claims for negligence, errors, or omissions in their services.

Client Confidence

Having Tour Operator’s 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 an insured travel agency, knowing that their interests and investments are protected.

Compliance with Regulations 

In many jurisdictions, travel agencies must 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.