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Do you need E&O insurance as a travel agent?
What E&O insurance covers for travel agents, what it costs, and whether your business needs it.
If you’re a travel agent or run a travel agency, the short answer is yes, you need Errors and Omissions (E&O) insurance.
Below, we cover what E&O insurance for travel agents is, what it protects against and doesn’t, how much it costs, and which other policies your agency should consider. If you’re looking to grow your agency’s revenue while you’re at it, the Holafly eSIM for Partners program lets you earn commission by reselling eSIMs to your clients.
More on that at the end of the guide.
What is E&O insurance for travel agents?
E&O, also known as professional liability insurance, is a business policy that protects travel agents from financial losses caused by professional mistakes, negligence, or failure to deliver promised services.
How much is E&O insurance for travel agents? It costs between $30 and $50 per month, and annual premiums generally range from $400 to $1,200.
Here’s what it typically covers:
- Legal defense fees: Attorney fees and court costs, even if the lawsuit is frivolous
- Booking errors: Mistakes like entering the wrong flight dates, using the wrong airport code, or making a name error that causes a client to miss travel
- Professional omissions: Failing to advise a client on visa requirements, health regulations, or passport validity rules
- Negligence and misrepresentation: Providing inaccurate information about a destination, supplier, or travel product
- Supplier failures: Situations where a supplier (e.g., hotel or cruise line) fails to deliver, and the client holds you accountable
- Settlements and judgments: Payments for valid claims or out-of-court settlements, up to your policy limit
Without travel agency Errors and Omissions insurance, a major lawsuit could result in a court seizing your business or personal assets to cover damages.
Do you need E&O insurance?
As mentioned earlier, you do need E&O insurance for travel agents.
Here’s what to consider whether you’re an individual agent or running an agency.
As a travel agent
- Hosted agents: Host agencies include E&O coverage for their independent contractors as part of membership. However, this typically only applies to bookings made under the host’s accreditation number. If you make bookings outside of that, you may not be covered
- Solo entrepreneurs: If you operate independently (i.e., without a host agency), you’ll need your own policy
- Gap coverage: Some hosted agents purchase a personal policy on top of their host’s coverage for higher limits or to cover bookings made outside the host’s setup
If you’re unsure where you stand, check your host agency agreement and confirm whether you’re listed as an “additional insured” on their policy.
As a travel agency
- Vicarious liability: Agencies can be held responsible for the professional mistakes of their employees and independent contractors. An agency-level policy can be structured to cover associated staff
- Entity protection: If your agency is an LLC or corporation, insurers typically require you to insure the business entity
- Licensing and accreditation: Bodies like IATA and many suppliers require proof of agency-level E&O coverage before granting appointments or credentials
What does E&O insurance cover and not cover?
E&O insurance for travel agents covers professional mistakes that cause financial loss to clients. It doesn’t cover everything, though.
Here’s a quick breakdown of what’s in and what’s out.
| Item | Does E&O insurance cover it? |
|---|---|
| Legal defense fees (including frivolous lawsuits) | Yes |
| Booking errors (e.g., wrong dates, names, airport codes) | Yes |
| Failure to advise on visa or health requirements | Yes |
| Negligence or misrepresentation | Yes |
| Supplier failures you’re held accountable for | Yes |
| Settlements and judgments up to policy limit | Yes |
| Intentional fraud or criminal acts | No |
| Bodily injury/property damage | No |
| Data breaches and cyber incidents | No |
| Employment disputes or wrongful termination | No |
| Errors known before the policy started | No |
| Moral hazard (errors that benefit you financially) | No |
Other types of travel agency insurance
Travel agent Errors and Omissions insurance is essential, as evident from the table above. Still, it doesn’t cover every risk.
Here are the other policies worth having:
Business operations
- General Liability Insurance: Covers third-party claims for bodily injury or property damage at your place of business (e.g., a client injuring themselves in your office)
- Cyber Liability Insurance: Covers costs related to data breaches, ransomware, and client notifications
- Commercial Property Insurance: Covers physical business assets, including office equipment, furniture, and computers, against fire, theft, or natural disasters
- Business Owner’s Policy (BOP): A bundled policy that typically combines General Liability and Commercial Property coverage into a cost-effective plan
Personnel and legal
- Workers’ Compensation: Often legally required if you have employees. Covers medical costs and lost wages for on-the-job injuries
- Commercial Crime Insurance: Protects the business from financial losses caused by employee dishonesty (e.g., embezzlement or theft of client funds)
- Directors and Officers (D&O) Liability: Protects the personal assets of directors and officers if they’re sued over decisions made while managing the company
Specialized travel industry coverage
- Scheduled Airline Failure Insurance (SAFI): Covers your agency and clients if an airline goes bankrupt after a booking is made but before travel is completed
- Business Interruption Insurance: Replaces lost income if your agency has to temporarily close due to a covered event such as a fire or major disaster
- Commercial Auto Insurance: Needed if your agency owns vehicles or if employees use personal cars for business purposes
Add Holafly’s services to your travel agency business plan
Growing a travel agency means constantly looking for ways to deliver more value to your clients while finding new revenue streams.
The Holafly eSIM for Partners program gives you a way to do both.
By joining the program, your agency earns commission every time a client buys a Holafly eSIM through your unique referral link. Our eSIMs cover 200+ destinations and are delivered digitally, so there’s no inventory or logistics management on your side.
It’s a practical add-on that gives your agency a competitive edge without increasing your workflow’s complexity. To get started, visit our B2B referral program webpage.
Plans that may interest you
I’m a writer with over eight years of experience in digital content. My work has appeared in publications such as The New York Times, Forbes, Business Insider, and the BBC. At Holafly, I write clear, practical guides to help travelers stay connected with eSIM technology. In my spare time, I enjoy car detailing, biking around Warsaw, and capturing portraits.
