AT A GLANCE
How the protection works
A clear travel agent or tour operator insurance proposal should describe the services provided, whether the business acts as agent, organiser or principal, annual turnover, booking values, destinations, customer numbers, package travel exposure, suppliers, contractual responsibilities, payment handling, professional advice, previous claims and any specialist or high-risk activities.
Travel Agents & Tour Operators is not one universal contract. Eligibility, sections, limits and wording vary by insurer and must be matched to the individual risk.
TRAVEL TRADE RISK
What may be covered
- Professional indemnity or errors-and-omissions liability for insured allegations arising from booking, advice or arrangement services where selected.
- Public and employers’ liability for declared premises, employees and customer-facing activities.
- Cyber, crime, business interruption or other specialist sections where specifically required by the business model and exposures.
Cover applies only as stated in the quotation, schedule and full policy wording.
BOUNDARIES
Common exclusions and limitations
- Services, destinations, activities or contractual responsibilities outside the accepted business description.
- Known circumstances, insolvency or financial failure exposures, deliberate acts and policy-specific exclusions.
- Cyber, professional, cancellation or supplier-failure exposures where the required section has not been selected.
This is not a complete list. The actual wording, endorsements, excesses and schedule determine the protection.
CLAIMS IN PRACTICE
How a claim might arise
01. A customer alleges financial loss after an error in booking, documentation, advice or travel arrangements.
02. A customer or third party alleges injury or damage connected with an insured premises or activity.
03. A cyber incident, supplier problem or other insured event disrupts bookings and creates recovery costs.
These examples are illustrative only and do not confirm that a particular claim would be covered.
CHOOSING COVER
Questions worth resolving
- Does the proposal clearly state whether the business acts as travel agent, tour operator, organiser or principal?
- Are turnover, booking values, destinations, customer numbers, suppliers and contractual responsibilities accurately described?
- Are package travel exposure, professional advice, payment handling, cyber controls and previous claims clearly identified?
For a wider checklist, see the DIBNI Commercial Insurance Proposal Guide.
CONNECTED RISKS
Related protection to consider
- Property and business interruption where physical damage could stop operations.
- Public, employers’ or product liability for injury and property-damage exposures.
- Cyber, professional indemnity or management liability where data, advice or governance creates additional risk.
- Motor, marine, travel or other specialist protection where the activity requires it.
QUESTIONS
Frequently asked questions
What information should a travel agent or tour operator prepare for an insurance proposal?
Useful information commonly includes the business model, turnover, booking values, destinations, customer numbers, package travel exposure, suppliers, contractual responsibilities, payment handling, professional advice, previous claims and cyber controls.
Why does it matter whether the business acts as agent or principal?
The contractual role can change the responsibilities the business assumes toward customers and suppliers, so it should be described clearly rather than inferred from the trading name.
Why should destinations and suppliers be disclosed?
Geography, supplier dependence and contractual arrangements can materially change the exposure and help the receiving insurance professional understand the risk more accurately.