As a travel advisor, your reputation is everything. Clients trust you to design seamless, memorable journeys—and most of the time, you deliver. But what happens when something goes wrong outside of your control—or even due to a small oversight? Errors & Omissions (E&O) insurance stands as one of the most crucial protections in your toolkit, yet many advisors overlook it until it’s too late.
Errors & Omissions insurance is professional liability coverage designed to protect service providers—like travel advisors—against claims of mistakes, negligence, or omissions. Whether it’s a booking error, advice that led to unexpected costs, or miscommunication, E&O helps cover legal defense costs, settlements, or judgments. Without it, even one lawsuit could threaten your business’s financial stability.
Real-world scenarios where E&O matters:
- A flight booked with the wrong date, leading to missed connections and extra expense.
- Forgetting to alert a client about visa or health requirements, resulting in denied boarding or entry.
- Supplier cancellations or failures (hotel, cruise, transport) for which the client holds you accountable.
- Misunderstanding expectations (private tour vs. group tour), leading to dissatisfaction and demands for compensation.
These are not just hypotheticals—they happen more often than you’d think.
Why E&O is non-negotiable:
- It protects your business assets; legal fees and damages from lawsuits can add up fast.
- It builds trust—clients and partners see you as a true professional when you carry proper coverage.
- Many host agencies, suppliers, or industry accreditation bodies require proof of E&O.
- It gives peace of mind. You focus on designing experiences; E&O helps you handle the “what ifs.”
How to Choose the Right E&O Policy
When evaluating E&O insurance, keep these factors top of mind:
- Coverage Limits & Deductibles – Higher coverage limits protect you better in big claims; deductibles should feel manageable.
- Scope of Coverage – Ensure the policy clearly covers booking errors, advice/omissions, supplier defaults, miscommunication, etc.
- Geographical & Jurisdictional Coverage – If you book travel across many countries, check whether the policy covers international claims or litigations outside your home country.
- Defense Costs – Are legal defense fees included outside of your policy limit or within it? This can make a big difference.
- Retroactive / Prior Acts Coverage – If there was an omission or error before you got the policy, will it still be covered?
- Exclusions – Be aware of what is not covered: intentional wrongdoing, criminal acts, perhaps certain high-risk adventure travel experiences, etc.
- Reputation & Claims Handling – A provider’s responsiveness and fairness in handling claims often matter more than small premium differences.
Errors & Omissions insurance isn’t just about being safe—it’s about professionalism. It’s a signal to your clients, partners, and suppliers that you take your role seriously, that you anticipate risk, and that you’ll stand behind your work.
If you haven’t yet, contact a few providers, get quotes, and choose a policy that matches your travel style (luxury, adventure, group travel, etc.). Make E&O part of your launch checklist—and renew it annually as your business grows and your risks change.