What is the purpose of Errors and Omissions Insurance?

Errors and Omissions Insurance serves a crucial function for travel advisors by providing protection against negligence claims that may arise during the course of their work. When travel advisors plan trips and provide recommendations, there is always a risk that something could go wrong, leading clients to suffer a financial loss or other damages. If a client feels that the travel advisor's actions or advice were inadequate or led to a negative experience, they could file a claim for negligence. This type of insurance helps cover the legal costs and any settlements that may arise from such claims, ensuring that the advisor can continue to operate without the fear of financial ruin due to accidents or misunderstandings.

Other options do not align with the purpose of Errors and Omissions Insurance. For instance, providing discounts for clients is a marketing strategy rather than a risk mitigation measure. Coverage for travel-related injuries usually falls under liability or health insurance policies, not E&O insurance. Lastly, insuring against flight delays involves a different type of insurance, typically related to travel insurance products that address specific consumer concerns during travel.