Then consider the consequences of running your Travel Agent Business without Professional Indemnity protection.
BY GOW-GATES INSURANCE BROKERS
As a Travel Agent or Travel Wholesaler, you are a specialist in your very own professional field. The law requires that you exercise the required skill to an appropriate level expected from Professionals such as yourselves. Your liability arises the minute you fail to provide this level of skill which could result in an award for damages being given to a third party who suffers the loss. Travel professionals are indeed just that, experts in travel and just like an accountant or doctor, you too need to have this insurance to cover you for alleged breaches of your Professional Duty.
Professional Indemnity Insurance will compensate for the damages awarded against the Insured plus any costs or expenses incurred in defending the claim brought against you, (subject always to the terms, conditions and exclusions contained in the actual policy).
Arranging travel for clients is not an easy task as you well know. There are so many components to a trip that can go wrong. Unfortunately, when things do not go to plan, the first thing that comes to mind is to blame the agent, whether you are responsible or not. What happens if you find yourself in this situation?
Whilst I know every travel agent out there would love to have people travelling right now, this time is an opportunity to understand so much more about the “business” of travel and how Professional Indemnity cover works. We look at scenarios where you are accused of Professional Negligence. Below we will discuss the importance of Professional Indemnity Insurance along with a refresher on some practical guidelines that you can follow once an incident arises which may give rise to a claim.
It is VERY important to understand your Professional Indemnity Policy is a “Claims Made” policy which is different from normal property and public liability type policies.
A “Claims Made” policy means that the policy needs to be current at the time of a claim being made against you.
Regardless of when the incorrect advice or error was made, if you do not have a Professional Indemnity Policy current at the time when you become aware of the issue, you will not have any insurance protection. Sometimes there can be a large gap in time between when the actual or alleged failure occurred and when the claim is first brought against you.
At a time when no one is travelling as a result of COVID 19, there is a misconception that this insurance is not required – nothing could be further from the truth. If you have let your policy lapse, you should investigate obtaining a replacement policy as a matter of urgency.
Another misconception about Professional Indemnity is that the policy covers errors that result in you losing money – this is normally not the case. The policy is there to protect you in the event that you make an error or a misrepresentation which causes your passengers to suffer a financial loss.
Why not use this hibernation time to put in place processes that can streamline and protect your business to avoid issues in the future?
Remember, should any circumstances arise which may result in a claim, you must immediately notify your insurance broker as any delay in notifying the insurer may result in your insurer refusing to accept your claim.
If you would like further information, please feel free to contact Rebecca Fleming, Account Manager of our Special Programs Division at Gow-Gates Insurance Brokers on (02) 8267 9919 or firstname.lastname@example.org 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.