TRAVEL AGENT INSURANCE CASE STUDY
Online Travel Agency With Fees Grown Fourfold, PI Placed at Around $12,700 Against Quotes to $18,000
An online retail travel agency had grown its gross fees roughly fourfold in a year, with further growth projected. Nine markets were approached; three quoted, five referred and one declined.
THE SITUATION
An established online retail travel agency asked Tank Insurance to take its professional indemnity to market. The business had a small team across several states, and its gross fees had grown roughly fourfold in a year to more than $8 million, with further growth projected. There was no US or Canadian activity, no adventure travel, and a clean claims history.
OUR APPROACH
- The expiring policy was obtained for comparison so the remarket compared like with like.
- Nine markets were approached with the three-year fee history disclosed.
- Three quoted: approximately $12,700, $16,200 and $18,000. Five referred the risk and one declined.
THE CHALLENGES
Rapid fee growth can prompt an underwriter to refer a travel risk. Revenue that quadruples in a year reads as either a great business or an unstable one, and the submission has to explain which. Presenting the fee history and the clean claims record together is what converted three of the nine markets into quotes.
THE OUTCOME
Professional indemnity was placed with AIG at a premium of approximately $12,700 a year, against alternative quotes of around $16,200 and $18,000.
Final Solution: PI for a fast-growing online travel agency at around $12,700 a year, the lowest of three quotes after five referrals and one decline.
This case records one historical outcome; current insurer appetite, premium, timing and terms depend on the complete risk at the time of application.
For the wider buying context, see our insurance for travel agents guide and the professional indemnity insurance brokers page.
TRAVEL AGENCY QUESTIONS
What this placement answers for other travel businesses
How much does PI cost for a travel agency?
Why do insurers refer a travel agency rather than quote?
What should a travel agency check on its existing PI policy before remarketing?
TRAVEL AGENT INSURANCE
Put this placement in context
Case-study results are historical and are not a promise of current pricing, capacity or policy terms. This page is general information only and does not take account of your objectives, financial situation or needs.
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