In last month’s issue of The Group Travel Leader, we covered the ins and outs of selecting the right travel insurance. But what if, as a tour operator, you want to sell travel insurance?
We recommend tour operators sell travel insurance for a variety of reasons. First and foremost, it’s a valuable service to offer to your clients because it saves them the time and hassle of finding their own. Secondly, it could mean you earn a little extra commission from the sale. And, finally, peace of mind for your travelers means peace of mind for you. If there’s an emergency during a trip, you know your travelers will be covered — and that they won’t be expecting you to recoup any losses.
Here are some steps to take when it comes to selling travel insurance as a tour operator.
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Now, back to the article.
Know the legal requirements for selling travel insurance
Travel insurance is a regulated product, but each state has different requirements for selling it. Some states require tour operators be licensed, so if you operate in a state where licensure is required — or even if you’re selling to customers in a state that requires it — you’ll need a license. Brush up on your state’s regulations to make sure you’re operating your business legally. However, some things remain consistent across the board. For example, it’s always illegal to package travel insurance with your trip. You cannot offer your travelers free or discounted travel insurance when they book or as part of the overall trip price. It must be a separate item on the invoice.
Determine the best type of insurance for each trip
There are very few situations where travel insurance is one size fits all. If you’re a tour operator who plans many types of trips to many destinations, it’s probably not a good idea to try to craft one travel insurance policy to apply to all your trips. Instead, work with a travel insurance vendor to create a policy for each trip or type of trip that best meets the needs of your travelers. If it’s tailored to the trip they’re taking, your travelers won’t be over- or under-insured, and it increases the likelihood that they will buy your policy as opposed to purchasing one on their own.
Communicate clearly to your travelers
Travel insurance, like all other forms of insurance, can be really complicated. But it’s very important (for your sake and for your customers’ sakes) that you’re well-versed and knowledgeable about it. If you can’t explain exactly what travel insurance is, why travelers should purchase it and what specifically the policy you’re selling covers and doesn’t cover, you need to educate yourself further. This will not only help you sell the policy, but also help clear up any confusion before the customer decides to buy. You also need to help them understand the cost-benefit ratio and what factors determine the price of their insurance premium, from the trip’s price to its destination.
Keep an eye on the time
Travelers need to know there’s often a limited time frame to purchase travel insurance. Usually, it ranges from one to three weeks after you make the first payment on your trip. When you’re selling a travel insurance policy, make your travelers aware of the time constraints on the policy. It’s also a good idea to let them know that this brief window applies to other policies, too, just in case they want to shop around for coverage.
If they don’t want your travel insurance…
If your travelers don’t want to buy your travel insurance policy, that’s perfectly all right. Remember, you can’t require them to purchase insurance. You should still encourage them to buy a different policy and refer them to several reputable travel insurance companies, so they will have some level of protection for the trip. If they decide to forego travel insurance altogether, which is legally their right, it’s a good idea to have them sign a waiver stating they acknowledge they will not be financially covered in the event of emergencies or cancellations. Be specific here and list as many scenarios as possible, ranging from missed flights to medical evacuations, so travelers are aware of the potential risks of traveling uninsured.
