In the travel industry, even a minor mis‐booking, missed connection, or incorrect advice can lead to significant client loss, reputational damage and legal claims. For travel agents, tour operators, advisor-services and booking specialists in London and across the UK, having robust Errors and Omissions (E&O) insurance — also known as professional indemnity or professional liability insurance — is a key part of managing risk and maintaining business resilience.
At Fraser Bond we help travel professionals understand the scope of E&O cover, the risks they face, and how to choose insurance that fits their service model, regulatory obligations and client expectations.
E&O insurance is a form of professional liability cover designed for service-providers (such as travel agents) whose work involves giving advice, arranging services or managing bookings on behalf of clients. It steps in when a client claims your agency’s error or omission caused them financial loss.
Typical scenarios for travel agents include:
Booking the wrong flight date or destination for a client.
Failing to ensure clients hold the correct visas, documentation or meet travel requirements.
Recommending a tour operator, cruise line or supplier that becomes insolvent, leaving clients out of pocket.
Mis‐communicating itinerary details leading to missed connections or cancelled arrangements.
E&O insurance covers legal defence costs, settlements or judgments (up to policy limit) arising from these professional service errors. However, it’s distinct from general liability insurance (which covers bodily injury or property damage) and from travel‐insurance sold to clients.
Operating in the UK travel market — especially London which draws both domestic and international clients — brings elevated risk:
High‐value clients, complex itineraries, multiple suppliers and cross‐border arrangements raise exposure to errors.
Many clients, host agencies, consortia or suppliers may require travel agents to demonstrate E&O cover before engaging or accrediting you.
Legal claims may arise even if the agent did not intentionally do anything wrong — the cost of defending yourself alone can be significant.
For travel agents who charge service fees, manage bookings as agent or principal, or work with packages under the Package Travel and Linked Travel Arrangements Regulations 2018, the potential liability is higher.
The right E&O cover protects your business continuity, professional reputation and client trust — essential in London’s competitive travel ecosystem.
Legal defence costs and claimants’ costs when a client alleges negligence, mistake or omission in your professional service.
Financial loss caused by your error or omission (for example re-booking costs, cancelled arrangements, supplier failure).
Claims arising from past work, if your policy includes a retroactive date.
In some policies, extended cover for misrepresentation or failed service delivery.
Bodily injury or property damage to third parties — these are usually covered by general liability insurance.
Fraudulent or intentional wrongdoing by the insured.
Losses covered under travel insurance that the client should have purchased (e.g., cancellation due to illness).
Errors or omissions outside the scope of the defined professional service, or outside the territory or policy period (if claims-made).
The cost of E&O insurance for travel agents varies depending on risk factors. Some indicative points:
Premiums depend on turnover, number of clients/bookings, whether you operate as an independent agent or a large agency, past claims history, the services offered (e.g., package travel vs simple bookings).
For smaller agents, premiums might start at moderate levels for standard coverage – some UK/US data suggest smaller agencies might pay in the lower hundreds of pounds per annum for basic cover.
Higher limits, complex operations (international, luxury travel, large groups), higher deductibles, or agencies acting as principals rather than subcontractors will all increase cost.
It is essential to obtain a quote specific to your business model, territory and service scope.
Fraser Bond recommends the following approach when securing or reviewing your policy:
Define your scope of professional services – Are you booking flights/hotels, arranging complex packages, working international destinations, handling visas, acting as principal or agent? The broader the service, the greater the risk.
Check contract and supplier requirements – Your host agency, suppliers or booking platforms may impose minimum E&O (or professional indemnity) cover.
Select appropriate limit and excess – Ensure your limit is sufficient relative to the size and value of your average booking or exposure.
Check policy wording carefully – Ensure your professional activity is included (e.g., package travel advice, supplier insolvency exposure). Understand retroactive dates, territory, claim‐made vs occurrence basis, exclusions.
Ensure you have complementary cover – E&O doesn’t replace general liability, property insurance or cyber/data breach cover (important if you handle client personal data).
Maintain continuous cover – Claims-made policies require cover from the date of incident to claim; a gap in cover can leave you vulnerable.
Review annually or when your business changes – If you expand into new markets, take on groups, cruise bookings, or add service fees, your insurance needs may increase.
Work with a specialist broker – Because travel agency risk is specific (supplier collapse, regulatory obligations, principal vs agent roles), use insurers experienced in the travel sector.
While many travel consultants and agents can purchase standard insurance, Fraser Bond brings enhanced value for UK and London travel professionals by:
Understanding how your travel business links with property, asset, supplier and client risk (especially if you work with property-linked travel, corporate travel or high-net-worth clients).
Helping review and interpret E&O/PI policy wordings & ensuring cover aligns with your specific bookings, service model and regulatory position.
Supporting you in aligning your insurance structure with business growth, contract requirements, supplier networks and client expectations.
Providing a holistic advisory service—covering operational risk (bookings, suppliers), compliance, insurance and business strategy.
Protect your travel agency’s services, reputation and future with the right Errors and Omissions (E&O) insurance.
Visit FraserBond.com or contact our London advisory team today for specialist guidance on travel agent professional liability, policy review and tailored cover for your business model.
