Professional Liability, 'E & O' Insurance
Sample Claims & Claim of the Month
One of the first items you may want to be familiar with is the terminology used to describe this coverage.
"Travel Agents' Professional Liability Insurance" is commonly referred to as "Errors and Omissions", or simply "E&O".
Technically, errors and omissions coverage represents only one component of a comprehensive "Travel Agents' Professional Liability" policy. The type of claim that would fall under the "E&O" category would be a client alleging that an agent booked an incorrect departure date.
Unfortunately, claims are also made against travel companies for situations that involve bodily injury to a client. One distinction of the travel industry is that unlike most other types of businesses, travel agencies need protection for bodily injury claims that could occur anywhere in the world. After all, it was the travel company who arranged the trip for the client. The coverage that is selected should recognize this type of travel-related exposure.
Storefront offices often maintain General Liability coverage for incidents arising out of business operations. However, standard commercial coverage such as a "Business Owner's Policy" (BOP) or "Commercial General Liability" (CGL) are typically not designed for the unique worldwide exposures of a travel company.
A quality "Travel Agents' Professional Liability" policy should provide worldwide liability coverage for "E&O' in addition to "Bodily Injury" (BI) and "Property Damage" (PD) claims of the agency's clients.
This is one reason why a policy specifically designed for the industry has earned its place in travel companies' insurance portfolios. But not all programs are created equal.
The program you select should have personnel with experience underwriting exposures & handling professional liability claims for travel companies.
Although a claim is always undesirable, the knowledge of the staff responsible for working on your claim is invaluable when it is time to protect your agency. Look for specific experience in the very specialized travel industry professional liability area.
Of course, the coverage form is also of utmost importance. Follow our links to the coverage overview for more details on how our program protects travel companies.