This is probably the most crucial element of your insurance program as a travel fanatic. Liability insurance protects from potential hazards. Just recall some of the big cash awards you have read about that have resulted from lawsuits concerning liability of one kind or another and you will understand the importance of this insurance. Your insurance agent can describe the various types of liability insurance coverage that are available. If you will end up with a comprehensive general policy, make sure that the public plan does not include items you don’t need. Pay for only the insurance you need. For example, your travel tour business may not need product liability insurance. Do not confuse business liability coverage with your liability coverage, both of which you need. Your coverage will not cover a business-generated liability. Check to be certain. Compare the costs of different levels of coverage. In some cases, a $2 million policy costs only slightly more than a $1 million plan. This economy of scale is real, with most forms of insurance coverage. That is, after an absolute value, additional insurance becomes very economical.
KEY PERSON INSURANCE
This type of insurance is particularly essential for the sole proprietorship or partnership where the loss of one person through illness, accident, or death may render the business inoperative or severely limit its operations. This insurance, although not inexpensive, can protect this situation. Critical person insurance might also be necessary for other travel tourists involved in your travel tour business. SGC was a small firm run by three partners, a software programmer, marketer, and a general manager. Their product was a sophisticated computer program used by aerospace firms. Al, the programmer, was involved in a severe automobile accident, became disabled, and SGC lost their programming capability. The problem was that the computer program written by Al was mostly the company’s sole product. Modifications to accommodate the customer became impossible, and the time to bring another programmer up to speed was excessive. SGC lost considerable business as a result of this situation. These losses could have been offset by critical person insurance.
You, as a travel agent and business owner, should be covered by disability insurance whether or not you decide on critical person insurance. This insurance, along with business-interruption insurance, described below, will help ensure your travel tour and agency business will continue to operate in the unfortunate situation where you are unable to work. Your disability insurance policy needs to provide adequate coverage. Particular attention should be paid to the definition of “disability,” delay time until payments start when coverage terminates, and adjustments for inflation.
Fire insurance, like all insurance, is complicated and travel tourists should understand what IS and is NOT covered. For example, the typical best business car insurance quotes covers the loss of contents but does not cover your injuries from the fact that you may be out of business for 2-months while your facility is rebuilt. Fire insurance is mandatory whether you’re working out of a home office or you have a separate facility. Travel agents are encouraged to discuss a comprehensive policy with your agent. Take the time to understand the details. Will the contents be insured for their replacement value or actual value at the time of loss?