How Much Does Travel Agent Insurance Cost? 2025 Rates

Travel agents in the U.S. typically spend between $360 and $600 per year on business insurance. That equals about $30 to $50 each month.

What Drives Premiums

Several factors influence how much coverage will cost:

• Revenue – Higher earnings often mean larger client contracts, which can increase liability exposure.
• Business size – Solo agents usually pay less than agencies with multiple employees and office space.
• Location – Operating in busy cities or high-risk areas tends to raise premiums compared to quieter regions.
• Services offered – Providing additional services, such as event planning or group travel coordination, can add risk.
• Claims history – A clean record helps keep costs down, while past claims may raise rates.

Why It Matters

Understanding these cost drivers helps travel agents budget wisely and choose coverage that matches their risks. With the right plan, they can protect their business without overspending.

How Much Does Travel Agent Insurance Cost?

On average, travel agents spend between $360 and $600 annually on business insurance. That equals about $30 to $60 per month. These figures are only estimates, and the actual premium depends on the details of your agency.

Why Costs Differ

No two travel agencies are alike. A solo home-based agent with minimal equipment will usually pay far less than a larger storefront agency with staff, international bookings, and valuable office property.

Key Cost Drivers

Several factors influence how much you’ll pay for coverage:

• Claims history – Filing past claims often raises premiums, while a clean record can lower them.
• Property size and value – Larger offices or expensive equipment increase commercial property insurance costs.
• Number of employees – More staff means greater liability exposure and higher workers’ comp expenses.
• Business interruption and add-ons – Extra coverage options add to the total bill.

Services and Location

The type of travel services you offer and where you operate also matter. Agencies that arrange adventure or high-risk travel packages often face higher liability costs. Similarly, agencies in busy cities with higher foot traffic or legal risks may pay more for coverage compared to small online-only businesses in quieter areas.

Why This Matters

Understanding these variables helps travel agents estimate insurance needs more accurately and budget for the real costs of protecting their business. With the right coverage, you can safeguard your agency without overspending.

Average Travel Agent Insurance Costs For Coverage Types

When it comes to protecting your travel agency , different types of insurance cover different risks. Understanding the average cost, coverage details, and what influences pricing for each policy type can help you build a more effective insurance plan. Here’s a closer look at the major coverages most travel agents need.

General liability insurance: $30 per month

Business owner’s policy: $50 per month

Workers’ compensation insurance: $54 per month

Commercial auto insurance: $159 per month

Errors and omissions insurance: $31 per month

Cyber insurance: $127 per month

General Liability Insurance

The average cost of general liability insurance for a travel agent is about $30 per month.

General liability covers third-party bodily injury, property damage, and advertising injuries. For example, if a travel agent accidentally shares a client’s personal travel details in a marketing email without their permission, and the client sues for a privacy violation, this policy could help cover legal costs and any settlement.

Typical policy limits are $1 million per occurrence and $2 million aggregate.

Factors that influence the cost include the business size, location, customer traffic volume, previous claims history, and any additional insured endorsements.

Average annual premiums by state:

Note: These estimates are based on average national General Liability Insurance premiums for travel agent businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on business size, services offered, claims history, and insurer underwriting practices.

Business Owner’s Policy (BOP)

The average cost of a business owner’s policy (BOP) is about $50 per month for travel agents.

A BOP bundles general liability insurance with commercial property insurance. It protects against customer injuries, property damage, and loss or damage to your office and equipment. For example, if a fire breaks out in your travel agency office and damages your furniture, computers, and travel brochures, the BOP would help cover the repair and replacement costs.

Typical policy limits are $1 million per occurrence and $2 million aggregate for liability, with separate property coverage limits based on the value insured.

Cost factors include the business property value, location risk (such as flood or crime rates), business revenue, number of employees, and any optional endorsements like business interruption insurance.

Average annual premiums by state:

Note: These estimates are based on average national BOP premiums for travel agent businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on business size, services offered, claims history, and insurer underwriting practices.

Workers’ Compensation Insurance

The average cost of workers’ compensation insurance for a travel agent is around $54 per month.

Workers’ comp covers medical bills, rehabilitation, and lost wages for employees injured on the job. For example, if a travel agent slips in the office and injures their back, workers’ compensation would help pay for their medical treatment and provide partial wages while they recover and can’t work.

Policy limits are regulated by each state, but typically include medical costs and a percentage of lost wages without a set cap.

Premiums are influenced by the size of your payroll, the type of work employees perform, your claims history, and any implemented safety programs.

Average annual premiums by state:

Note: These estimates are based on average national Workers’ Compensation premiums for travel agent businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on payroll size, number of employees, claims history, and insurer underwriting practices.

Commercial Auto Insurance

The average cost of commercial auto insurance for travel agents is about $159 per month.

Commercial auto insurance covers vehicles owned or used by the business for accidents, theft, vandalism, or damage. For example, if an employee is driving a company car to deliver travel documents to a client and gets into an accident, this policy would help cover the repair costs and any third-party injury or property damage claims.

Factors influencing the cost include the number and type of vehicles, how often they are used, the driving records of employees, and whether you add endorsements like hired and non-owned auto insurance (HNOA) for employee-owned vehicles.

Average annual premiums by state:

Note: These estimates are based on average national Commercial Auto Insurance premiums for travel agent businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on the number of vehicles, driving records, coverage limits, and insurer underwriting practices.

Errors & Omission Insurance

The average cost of errors & omissions insurance for a travel agent is about $31 per month.

Errors & omissions insurance protects your business if a customer claims you made a mistake, gave bad advice, or didn’t do the job properly, and it caused them a financial loss.

For example, if you accidentally book the wrong travel dates for a client’s vacation and they miss a non-refundable event or incur extra costs to fix the mistake, they could sue you for negligence. E&O insurance would help cover your legal defense and any settlement or damages you’re required to pay.

The cost of errors & omissions insurance depends on things like how much coverage you want, how big your business is, and the kind of services you provide.

Average annual premiums by state:

Note: These estimates are based on average national Errors & Omissions Insurance premiums for travel agent businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on business size, services offered, claims history, and insurer underwriting practices.

Cyber Insurance

The average cost of cyber insurance for a travel agent  is about $127 per month.

Cyber insurance is a type of business insurance that helps protect you if your computers, data, or online systems are hacked, attacked, or accidentally exposed.

For example, if your travel agency stores personal client information like passport numbers, travel itineraries, or payment details and your system gets hacked, that data could be stolen or exposed. If a client sues you over the data breach, cyber liability insurance can help cover your legal fees, the cost of notifying affected clients, and the expenses to recover and secure your systems.

The cost of cyber insurance for a travel agent business mostly depends on how much sensitive client information you handle, such as passport details, payment information, and travel itineraries.

Average annual premiums by state:

Note: These estimates are based on average national Cyber Insurance premiums for travel agent businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on business size, data sensitivity, claims history, and insurer underwriting practices.

Travel Agent Business Insurance Costs By Provider

Travel agent business insurance costs will vary greatly depending on the insurance carrier. Use the table below to find average costs across different providers.

Note: These estimates are based on average small business insurance costs for travel agencies, typically including professional liability (errors & omissions), general liability, and business owner’s policies. Actual premiums will vary depending on factors such as location, agency size, services offered, claims history, and coverage limits.

What Factors Impact Your Travel Agent Insurance Costs?

Insurance premiums for travel agents are determined by underwriters who assess your business’s overall risk profile. The type of trips you book, your location, the size of your agency, and your claims history all play a role in shaping what you’ll pay.

Property Value And Equipment

Agencies with expensive computers, office furniture, or a storefront typically face higher property insurance costs. Many agents also add coverage for equipment breakdown or cyber liability to safeguard sensitive client data.

Claims History

A history of frequent claims can raise premiums, as insurers view this as a sign of higher risk. Keeping a clean record often helps secure discounts and lower rates.

Type Of Travel Services

Not all travel services carry the same level of risk. Agents who book simple vacations usually pay less than those arranging complex international trips or adventure travel, which involve greater liability.

Policy Limits And Deductibles

Higher coverage limits provide stronger protection but increase premiums. Opting for a larger deductible can reduce monthly costs, though it means paying more out of pocket if a claim arises.

Location

Where your agency operates matters. Businesses in busy cities or high-crime areas often pay more for liability and property coverage compared to agencies in quieter, suburban regions.

Size Of The Business

Larger agencies with more employees, clients, and higher sales face greater risks. More staff increases workers’ compensation costs, while a bigger client base raises liability exposure.

How To Lower Your Travel Agent Insurance Costs

Running a travel agency comes with plenty of expenses, but your insurance premiums don’t have to overwhelm your budget. While coverage is essential, there are practical ways to cut costs without losing protection.

Raise Your Deductible

Opting for a higher deductible is a straightforward way to lower monthly premiums. Just be sure you can comfortably cover the out-of-pocket amount if a claim arises.

Bundle Policies Together

Combining coverage often leads to savings. Many insurers offer a Business Owner’s Policy (BOP) that merges general liability and property insurance at a reduced rate. Adding workers’ compensation through the same provider can unlock additional discounts while simplifying paperwork.

Ask About Discounts

Insurers frequently reward loyalty and upfront payments. You may qualify for reduced rates by signing a multi-year agreement or paying your premium in full instead of monthly installments.

Build A Safer Workplace

Accidents and mistakes can quickly drive up insurance costs. Training staff on safe office practices, protecting customer data, using secure booking systems, and following health guidelines all help reduce risks. Fewer claims mean lower liability premiums over time.

Strengthen Your Safety Program

Workers’ compensation costs can be managed by focusing on employee safety. Training staff on ergonomics, safe lifting techniques, and emergency procedures reduces injuries. When fewer claims are filed, premiums stay lower.