An Errors & Omissions (E&O) policy, also called E&O insurance, is a type of professional liability insurance that helps protect travel advisors if a client claims they suffered a financial loss because of an error, omission, or negligent act related to travel planning.
While no advisor wants to make a mistake, E&O insurance can provide valuable protection if a claim arises.
Why Do Travel Advisors Need E&O Insurance?
Even experienced travel advisors can face situations where a client believes a mistake was made.
Examples might include:
- Incorrect travel dates.
- Booking errors.
- Miscommunication about travel arrangements.
- Missing documentation.
- Alleged negligence in planning a trip.
An E&O policy may help cover certain legal expenses or settlements, depending on the policy’s terms, conditions, and coverage limits.
Does Every Travel Advisor Need Their Own Policy?
It depends on how you operate your business.
Many host agencies include Errors & Omissions (E&O) insurance for the travel advisors affiliated with them, while others require advisors to purchase their own policy. If you’re working with a host agency, be sure to ask what coverage is included and whether you need any additional protection.
If you choose to operate as a fully independent travel agency without a host agency, you’ll generally be responsible for obtaining your own E&O insurance. Because you’re operating your own agency, having your own policy is an important part of protecting your business from potential liability.
Check out our article, “What Is a Host Agency? (Definition)“
How Careers on Vacation® Helps Students Build a Strong Business
At Wanderlust Campus, Careers on Vacation® students learn that building a successful travel business involves much more than selling vacations.
Throughout the comprehensive 12-week certification program and business mastermind, students learn about important business topics like host agencies, supplier relationships, insurance considerations, and other foundational concepts that help them build their business with confidence.
Protect Your Business
E&O insurance is an important consideration for every travel advisor.
Understanding what it covers, whether you’re protected through your host agency, or whether you need your own policy can help you make informed decisions as you build and grow your travel business.
