In this post we will list some of the most common travel insurance claims. This will include claims that customers make on their travel insurance, along with claims they make against travel agents and tour operators.
What Are The Most Common Travel Insurance Claims?
Common travel insurance claims include:
- Medical expenses
- Travel cancellation
- Trip curtailment
- Missed or delayed transport
- Lost or damaged luggage
We’ll look at each of these in more detail below, including how common they are and how they might affect travel agents.
Medical Expenses Insurance Claims
According to data from Which?, medical expenses account for over 50% of all travel insurance claims. This is to cover treatment for illnesses or injuries travellers sustain abroad. Medical claims can be high, occasionally as much as a million pounds or more for a complex medical case which includes air repatriation.
Travellers may make a claim under their own personal travel insurance policy, which should specify a certain level of medical cover. If they are travelling to a location where healthcare is expensive, or if they are planning certain high-risk activities, then they may choose to take out a higher limit of medical cover.
However, travellers can claim damages and compensation against their travel agents or tour operators too. If you sell a package travel arrangement, then you may be liable for any injuries or illness the customer may sustain caused by the negligence of you or your suppliers.
Travel Cancellation and Trip Curtailment Claims
The second most common travel insurance claim, accounting for over 25% of all total claims. If a customer must cancel their trip due to an illness, a family emergency, or a natural disaster, then travel cancellation insurance can cover the lost expenditure.
Travellers may also claim for trip curtailment, should they need to cut their trip short due to an emergency or an unexpected event. With trip curtailment insurance, travellers can get reimbursed for any unused portions of their trip, along with any additional expenses they may incur through travelling home early.
Missed or Delayed Transport Claims
If industrial action or inclement weather delays travel, or causes a traveller to miss a connection, then their travel insurance can cover the costs of any alternative transport or accommodation they need to book. Some policies will even cover them for food and drink they purchase while they wait for a delayed connection.
Lost or Damaged Luggage Claims
Most travel insurance policies will provide a certain level of baggage insurance, which provides cover for any lost, stolen, or damaged bags or personal belongings. Customers may choose to extend this cover if they plan to travel with high-value items, or if they are visiting an area with relatively high crime rates.
Can Travel Agents And Tour Operators Be Liable For Claims?
As we have seen, some of the most common travel insurance claims will be covered by a traveller’s personal insurance policy. Yet travel agents and tour operators may be liable for certain claims, if they or their suppliers have made mistakes.
Customers may choose to make other types of claims against travel agents too. If something goes wrong with the booking, or if they are dissatisfied with the trip, they may take action against the travel agent or tour operator that sold them the experience.
Professional indemnity insurance can cover travel agents and tour operators for these sort of claims. This can cover any compensation the customer may be due, along with any legal fees that may arise as a result of the dispute.
How To Ensure You Have All The Cover You Need As a Travel Agent
It should be clear by now that travel insurance claims can get complicated. Travel is inherently risky, and if something goes wrong, it may not be immediately clear just who is liable. So, how can you ensure you have all the cover you need for any claims that may be made against your travel agency?
This is where an insurance broker can prove invaluable. An experienced insurance broker will take the time to get to know your travel agency, the types of trips you sell, and the sort of customers you sell them to. They can then help you understand all the risks your agency faces, before helping you access the bespoke travel insurance you need to cover these risks.
James Hallam is an independent Lloyd’s broker with access to a hand-picked selection of A-rated insurance providers. We provide a one stop shop service for the travel industry, and over 700 travel agents and tour operators depend on us for dedicated business insurance services. Also, we act as the trusted insurance advisor to ABTA and AITO.
Find out how we can help you today.