Travel Supplier Bankruptcy Legal Liability Protection

NTA members who are Professional Liability policyholders through Aon have an added coverage feature that provides some protection in the event they are sued due to a supplier bankruptcy.

Travel Supplier Bankruptcy Legal Liability Protection for Tour Operators protects against claims arising from the bankruptcy (or similar financial condition) of any travel supplier whose services were purchased on behalf of a client. Although it is not an automatic reimbursement, goodwill or consumer protection fund, it does offer the following important protection:

• Legal & Claim Expenses
  This enhancement, when added to a professional liability policy insured through the Aon program, will pay all expenses associated with the defense or handling of claims that are filed against a tour company or its owners, employees and/or independent contractors (subject to the policy’s deductible) which arise from the bankruptcy, insolvency or other similar financial condition of an unrelated tour supplier.
•  Payment if Liability Exists
  In addition, if the courts determine that the tour operator is legally responsible for damages arising from a supplier bankruptcy, then the policy would pay up to a maximum annual aggregate limit of $25,000.

Note: The initial defense of a tour operator would usually incorporate the argument that an operator or travel agency should not be held responsible for the financial condition of a supplier. If this position is unsuccessful, and the operator is held legally responsible, then an indemnity payment would be made subject to the applicable deductible and $25,000 coverage limit.

For more information, call Aon at 800.383.9617 and ask for the NTA desk.