What you need to be aware of when reviewing clients insurance.

Who do the 2018 Package Travel Regulations apply to and who they don’t

 The new Regulations apply to

  1. packages offered for sale or sold by traders to travellers, and
  2. linked travel arrangements,

The Regulations do not apply to

  1. packages and linked travel arrangements covering a period of less than 24 hours, unless overnight accommodation is included;
  2. packages offered, and linked travel arrangements facilitated, occasionally on a “not for profit basis” for a limited group of travellers
  3. packages and linked travel arrangements purchased on the basis of a general agreement
Types of businesses that may be affected

In addition to Travel Agents and Tour Operators the following businesses may be exposed:

  • Hotels
  • Clubs
  • Societies
  • Event Organisers
  • Hospitality providers
  • Car Hire
  • Ticket Agencies

the list goes on and on..

Do your clients organise packages?

The new regulations explicitly places Liability for the performance of the travel services included in the package, on the organiser – irrespective of whether the travel services are performed by third parties. Liability is not only what we understand in Insurance terms but also means any lack of conformity and travellers will be entitled to compensation for damages and loss of enjoyment. Packages must be financially protected and consumers must be given statutory information.

Inform your clients

You have clients who are completely unaware that they “package”. They need to know that they are exposed to these Regulations. The consequences for failing to adapt their business to the new regulations is not only facing liability claims but now also a number of criminal offences:

  • Failure to satisfactorily provide pre-contractual information
  • Failure to satisfactorily provide a contract or confirmation of contract and prescribed information
  • Failure to put in place compliant insolvency cover
  • Obtaining release of monies held on trust for insolvency cover by false statement
  • Failure to put in place compliant insolvency cover or provide pre-contractual information for LTAs
We are here to help!

Our experienced staff will help you explain the Package Travel Regulations to your clients and how to protect their exposures with Combined Liability, Professional Indemnity and Directors and Officers Insurances.

Contact your Regional BD Underwriter or call our office on 01923 298 440.