Operating a travel agency in London or the UK brings a unique set of risks: booking errors, supplier failure, client cancellations, regulatory exposure under the Package Travel and Linked Travel Arrangements Regulations 2018, and the reputational and financial fallout of mis-advising clients. Having the right travel agency insurance in place is critical to protect your business, your clients and your reputation.
At Fraser Bond, we advise travel agencies, tour operators and travel brokers on structuring insurance that aligns with their risk profile, regulatory environment and London-market exposures.
Travel agency insurance is a tailored package of insurance covers designed for travel agents, tour operators and agents acting as principals or intermediaries. Key components typically include:
Professional Indemnity (PI) / Errors & Omissions (E&O) Insurance – Protects you if a client claims your advice, booking or service caused them financial loss. For example, incorrect flight date, supplier insolvency, or missed travel arrangements.
Public Liability Insurance – Covers claims for third-party injury or property damage that arise from your business operations, such as a client being injured in your office or during a meeting.
Travel / Tour Operator Liability – Specific cover for travel businesses that assume liability under the Package Travel Regulations, including supplier failure / insolvent supplier risk, layoffs, missed bookings, and bookings sold as packages.
Office / Contents / Business Equipment Insurance – Covers your agency’s physical assets (computers, furniture, client records) against damage, theft or loss.
Cyber / Data Liability Insurance – Because travel agencies hold sensitive client data (passports, payment details, itineraries), coverage for data breach, ransomware or system failure is increasingly important.
Employers’ Liability Insurance – If you employ staff, legally required in the UK for any business with employees. Ensures you are covered if an employee is injured or falls ill as a result of their employment.
These cover types combine to form a risk mitigation framework suited to the travel-industry’s exposures.
Travel agencies have a distinct risk profile, and operating in London enhances certain exposures:
You may deal with high-value clients, corporate bookings, worldwide travel arrangements, or multi-component packages. Mistakes or supplier failures can trigger large claims.
Under the Package Travel Regulations, travel agencies may bear responsibility for supplier default or failure of arrangements they have sold. Cover must reflect this legal exposure.
Clients, suppliers, host agencies or consortia may require you to hold specific insurance cover before engaging your services.
Your clients trust you with complex arrangements (flights, hotels, tours, insurance) – any professional error can damage your reputation and lead to claims for financial loss.
Digital bookings, online operations and remote client engagement mean you hold personal and payment data, increasing cyber risk and regulatory compliance responsibilities.
Proper travel agency insurance ensures you can operate with confidence, satisfy client and supplier requirements, and protect your business from the financial impact of errors, omissions and external failures.
When selecting travel agency insurance, understanding cover levels, cost-drivers and policy features is key:
Many brokers show that travel agent insurance can start from around £5.64/month for basic public liability cover in the UK for small operations.
However, given the complexity of travel agency exposures, adequate cover may involve much higher limits for PI, package-liabilities, supplier default, and cyber cover.
Major cost-drivers include:
Annual turnover and number/value of bookings.
Whether you act as a principal or simply an intermediary.
The extent of your supplier obligations and whether you package components.
The geographic span of travel you handle (international clients, destinations, multiple suppliers).
Loss/claims history or operating in higher-risk niches (luxury travel, corporate travel, event travel).
Data/cyber risk and the complexity of your IT infrastructure.
Key policy features to verify:
Does PI cover include booking errors, supplier failure or passenger claims?
Does the policy explicitly cover your activities under the Package Travel Regulations?
Is cyber/data liability included or available as an extension?
Are your public liability limits sufficient for your interactions and client base?
Are contents/office equipment and business interruption covered if your operations are disrupted?
Are you compliant with any contractual requirements from suppliers, host platforms or client booking conditions?
Fraser Bond recommends the following approach for travel agencies:
Define your business model clearly – Are you a retail travel agency, a corporate travel broker, a niche tour operator, or a hybrid? Do you package components (flights + accommodation + tours)?
Check regulatory and supplier requirements – If you sell packages that include flights/accommodation, you may need specific cover for supplier failure, and you must meet obligations under the Package Travel Regulations.
Select appropriate cover types and limits – Ensure PI, public liability, travel-specific liabilities and cyber risks are considered; set limits that reflect your turnover, location and client base.
Review policy wording and exclusions carefully – Flights, accommodation, supplier failure, cancellations, data breach: ensure they are included. Don’t assume standard business insurance covers them.
Compare providers experienced in the travel sector – Because travel agencies have niche exposures, use insurers or brokers who specialise in travel/hospitality risks.
Ensure you can provide proof of insurance – Clients, suppliers or host platforms may request this as part of onboarding or accreditation.
Review annually and update as your business evolves – Changes such as expanding into new markets, increasing bookings, taking on corporate clients, or offering event travel will change your risk.
Keep risk-management measures in place – Good operational controls, supplier vetting, contract terms, cyber security and client documentation all help reduce your risk and may reduce premium.
Fraser Bond offers specialist advisory services aligned with travel-agency insurance needs by:
Understanding how your travel business operates within London’s dynamic market and how insurance links with risk, supplier exposure, client service and regulatory compliance.
Helping you review your existing insurance setup — ensuring policy wording, limits and scope match your business model, and identifying any gaps.
Advising you on how to present your insurance credentials to clients, suppliers and platforms, boosting your credibility.
Supporting your growth strategy — as you scale, diversify or take on larger bookings, your insurance should scale with you.
With our guidance, you gain not just cover, but confidence that your travel-agency business is protected, compliant and ready for growth.
If you operate a travel agency (or travel business) in London or the UK and want to ensure your insurance is appropriately structured, visit FraserBond.com or contact our London advisory team for tailored guidance on travel agency insurance, professional liability, supplier-failure cover, cyber/data protection and how to choose the right policy for your business.
