Insurance for ACTA travel professionals

In Quebec, a travel advisor must be affiliated with a travel agency holding a permit from the Office de la protection du consommateur (OPC). The agency carries the legal liability toward clients. That said, an independent or self-employed advisor is personally responsible for the consequences of an error or omission. Professional liability insurance, also called errors and omissions insurance, protects against claims arising from incorrect advice, omissions or negligence in the course of your duties. It is strongly recommended, even when your affiliated agency does not require it.

A La Turquoise broker can help you assess whether your situation requires individual coverage.

These two coverages protect against different risks. Understanding the difference helps you make sure you have the right protection.

General liability covers bodily injury and property damage caused to third parties. For example, a client who is injured on your premises. Professional liability covers financial losses arising from your services, such as an error, an omission or poor advice. For a travel professional, the two coverages work together. One covers what happens in your workspace. The other covers the recommendations you give your clients.

This depends on the contract that binds you to your agency. In Quebec, independent travel advisors act as outside agents under an exclusive contract with a single travel agency. They do not necessarily work out of the agency’s premises. The agency’s insurance coverage does not always extend to activities carried out outside its premises. If a claim relates to your own advice or an error on your part, your personal liability may be at stake.

Taking out your own professional liability insurance protects you, no matter the context in which you work.

In Quebec, the Fonds d’indemnisation des clients des agents de voyages (FICAV) can be used to reimburse a client. This can happen when a paid service is not delivered, for example due to an airline shutting down. The OPC manages this fund, which applies to agencies holding a valid permit. This covers the client’s financial protection. Your personal liability as an advisor raises separate questions. If a client believes you gave them poor information about a supplier’s risk, a claim may target your professional liability personally.

Not necessarily. General liability and professional liability do not automatically cover cybersecurity incidents. Travel professionals keep sensitive data on file: passports, payment information, personal contact details. A data breach exposes you to liability toward your clients.

Cyber insurance specifically covers this type of incident, including notification and recovery costs. A La Turquoise broker can tell you whether your current coverage includes this protection or whether an add-on is needed.