New ways of protecting your travel business
(and some not so new)

Until recently, travel businesses have really only had standard Business Insurance policies in place (including Public Liability, Professional Indemnity & Workers Compensation Insurance) to protect themselves. Many businesses still take on a lot of industry specific risks not covered by these standard policies, without looking at alternatives – whether it be Insurance or Risk Management Strategies to reduce their exposure.

Today these significant cover gaps for Travel Businesses can be easily addressed and mitigated through careful Risk Management and Disaster Recovery Planning. There have been many new risk management products and developments which now make it easy to protect your business from losses, most of which are often out of your control.

Latest Developments

AICS - AFTA Insolvency Chargeback Scheme

After many years, the unfair risk exposing agents to Credit Card Chargebacks following supplier insolvency can finally be managed. AFTA has developed a leading risk protection solution with the newly available AICS (AFTA Insolvency Chargeback Scheme).

If you haven’t already applied, get your application in! This protection is at no cost to you and takes away one of the biggest exposures Travel Businesses have been virtually powerless to control. To find out more, contact Amanda Rixon at AICS, or read up on this great development at www.aics.org.au

technology advances

Technology is moving at an astounding rate and now you can protect yourself from viruses and computer hacking, even privacy breaches with Cyber & Privacy Protection. By implementing stringent Risk Management Protocols, you can further protect your business.

Steps to mitigate cyber risk include:

1. Back up data regularly
2. Keep your software and virus protections up to date at all times
3. Ensure your staff are regularly updated on dangers of opening unfamiliar emails and keep them informed on the latest scams and how they can be targeted

Disaster Recovery Plans

A Disaster Recovery Plan is a “cheat sheet” you can develop for your business so you have a considered and documented process of what to do when a crisis occurs, and panic has the potential to take over, which could prevent the occurrence of a grievous error.

If your business doesn’t have one, it could be the most valuable exercise you undertake. Take the time to look at your business and carefully map out:

• What could go wrong?
• Can it be prevented?
• Can it be insured against?
• If one of these disasters happen, what steps need to be taken by you and your staff?
• Emergency procedures should be part of your Disaster Recovery Plan. Keep a copy of your plan at an off-site location and ensure that more than one person knows where it is.

Another important fact to remember is that booking information and records are crucial to Travel Businesses, so what safeguards are in place for these, and if lost, how can they be recovered?

Tips for offline booking records:

• You document all processes that make your business run, from the telephones, to tracking finances, to making your bookings (and who to contact – write down phone numbers)
• Ensure your computer back-up schedule is adhered to
• Keep current copies of computer files off-site and ensure they are accessible (keeping the back-up disks in the draw next to the computers is no use in the event of a major storm or fire)

The importance of planning ahead means that your business can be up and running so much faster, limiting the impact of events that could otherwise destroy your business. Check that you have the basics that you need regarding insurance.

Travel Business Insurance Checklist:
□ Business insurance for your assets
□ Cover for flood
□ Business interruption if your business premises are damaged
□ Cover for the Glass in your premises
□ Cover for Cash handling
□ Management Liability Insurance
□ Cyber Liability & Privacy Protection Insurance
□ Corporate Travel Insurance
□ Electronic Equipment Breakdown Cover
□ Income Protection Insurance
□ Life Insurance
□ Key Man (or Woman) Insurance
□ Workers Compensation
□ Crisis Insurance & Management Plans

This list is in no way exhaustive, but it is definitely a starting point to check of what you have and haven’t protected.

If you would like further information or an obligation free review of your existing insurance programme, please contact Rebecca Fleming, Manager of our Travel Division at Gow-Gates Insurance Brokers on (02) 8267 9919 or rfleming@gowgates.com.au to discuss your circumstances or to obtain a quotation.

General Advice Warning – the information in the above article is intended as a guide only and should not be relied upon without consulting your relevant insurance policy wording and conditions or conversely seeking professional advice from either your insurance broker or insurer regarding a claim or potential loss. Failure to adhere to this warning could result in a denial of a claim or potential loss or a reduction in settlement of a claim or potential loss.