Insurance: the topic that takes the fun right out travel.
OK, just kidding. While it may not be the most glamorous aspect of frequent travel, it’s important. If you own your own travel business, you likely understand the importance of insurance because you’ve seen things go wrong. You’ve seen injuries, illnesses, missed connections, weather and accidents compromise the dream trips of many travelers and leave them in the lurch for thousands of dollars of expenses. But many people don’t know much about the various types of insurance in the travel ecosystem or why they are so vital.
That’s why it’s your job as a travel seller to explain the benefits of travel insurance to your customers and assist them in selecting the right product. It’s also a good idea to brush up on the type of insurance you need for your own travel business.
Here are some things to consider when selecting the right insurance for you and for your travelers.
1. Have Your Own
When you’re selling travel, the insurance you need as a business owner is a little different than what your travelers need. That’s because travel insurance is not the same as corporate insurance, even if your business is travel-related. A travel business will need insurance that covers liability for things like accidents so that you, as the business owner, won’t be held liable if there’s an accident that injures one of your travelers. It’s also a great idea to have a policy with errors and omissions coverage in case you make a mistake and need to refund your travelers. For example, if you book a client’s return trip on the incorrect date, you can refund them and file an insurance claim so that you don’t have to take the loss.
2. Check with Vendors
Travel insurance has many layers, some of which overlap. In addition to your business’s coverage, many of your vendors will also carry insurance. Think about transportation companies, for instance. Motorcoach companies, hotels and tour operators are examples of vendors that will likely have their own insurance policies to protect them from liability in case of an accident or injury. So, when you’re choosing vendors for your trips, be sure to ask them about their policies. By doing so, you can be confident the insurance you recommend and carry will cover any gaps.
3. Figure Out Your Passengers’ Needs
Your travelers will likely have very different insurance needs depending on several factors. The first set of factors is the destination and type of trip they’ll be taking. The risks of travel vary greatly depending on the trip’s length, cost and included activities. International travel will likely require significantly greater coverage than a three-day domestic trip; it will likely need to include medical coverage in case of emergencies abroad, where U.S. health insurance policies are unlikely to be helpful. Your trip’s primary mode of transportation can also affect what policies should cover. A policy insuring a bus trip across one state won’t be the same as one insuring an international flight. Your travelers’ demographics can also be a factor. Older travelers may be more likely to experience injuries or adverse health events on or before trips, meaning medical coverage and coverage against trip cancellation or interruptions could be especially helpful for them.
4. Factor in Budget
The coverage you recommend to your travelers is going to vary based on their budgets, and what they can expect to pay will depend on the total cost of the trip. Insuring a domestic trip that costs $2,000 will be much less expensive than insuring an international trip that costs $10,000. The type of coverage they’re looking for can influence the cost as well. For example, a traveler who wants a policy that lets them cancel their trip for any reason should expect to pay significantly more than a standard policy that protects against cancellation for an emergency.
5. Consider the Timing
When customers book with you — whether you’re selling them travel insurance or they’re buying it through a third party — you’ll want to explain that there’s often a limited time frame to purchase travel insurance after booking a trip. Explain the nuances of travel insurance as efficiently as you can, and, if possible, have a policy you recommend, so your clients don’t have to spend too much time searching for a policy on their own. After all, travel insurance is a complicated and multifaceted product, so the faster they can make sense of it, the greater the odds are that they’ll be financially protected in case of emergencies, accidents and adverse events.
