Legal battles made easier with travel agent professional indemnity cover
Big business clients can be the lifeblood of some businesses, and travel companies may appreciate the reliance they have on corporate clients. But the larger the amount of responsibility, the larger the amount of legal risk. Even small-scale private clients can take legal action if they feel they have been wronged by a mistake a travel agent has made, and a more legally aware public could be more inclined to seek official advice if they feel they have suffered what is known as a financial injury because of a mistake, perceived or real. Travel agent professional indemnity cover provides cash payouts towards your legal defence if you ever face an unwanted legal claim.
To give a straightforward example, a travel company might sort out a team bonding trip for a group of employees. A mix up with the transport arrangement, could mean they are delayed on their return back to the UK, for days in some circumstances. This could mean the company in question is hit hard due to the lack of staff, and may seek compensation for any money it feels it has lost. It might have to hire agency staff for a short period while it waits for its employees to return, and could legally launch a claim for the expenditure of this.
Travel agent professional indemnity cover would pay the legal costs of defending such a case, whether or not the claim made against you is valid or not. It covers not just individuals but travel companies, and as such normally also guards against claims that the employees of a travel company have acted dishonestly, and perhaps been accused of stealing from a client.
Other eventualities which can normally be paid out on include allegations of defamation, claims you have breached someone’s confidentiality or copyright, and even the allegation you have lost or damaged important data or documents belonging to a client.
Indemnity cover is normally quite flexible-you can often arrange an excess as with any other common insurance policy, and you can also arrange cover periods which protect you while you are changing insurers, or which will even provide retroactive protection for claims which arrive in the future but which date back to something which happened before you even bought the policy.
Travel agent professional indemnity cover must also be set at a limit, as a policy will not pay out for an indefinite amount of legal help and compensation. How much you need depends on your business, and you will need to make a sensible judgement. Too much cover and you’ll be paying for protection you do not need, but being under insured would mean if you would need to pick up the difference of any large bill or compensation order.
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