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“Blame culture†travel cash claims prompt new legal protection insurance
Sunday, 26 May, 2010
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Legal protection insurance has been developed for operators and agents facing the increased possibility of litigation by consumers and other travel firms.
The insurance offers holiday providers and retailers the ability to cover themselves against costs incurred fighting claims in the courts as well as providing them with access to travel-specific legal advice and support.
Travel industry law firm Travlaw, which is behind the insurance, estimates that its top 30-spending travel clients will save an average of 20% on their annual legal bill with the new option.
Partner Sarah Lacy said it had been inspired in the wake of the volcanic ash crisis, which is expected to prompt a number of court cases both from consumers and between businesses, as well as sparking the interest of the relevant authorities, and where the law has not previously been tested.
The Travlaw Protect policy offers businesses up to £100,000 of legal expenses insurance. Subject to underwriting criteria, prices for cover and support services range from 1p to 25p per passenger, depending on the level of protection required.
“There is no doubt that the travel industry is seeing increasing numbers of claims in recent times, not only by consumers but also between businesses,” Lacy said.
“An economic downturn and a general ‘blame culture’ have prompted people, and businesses, to be much more willing to seek cash pay-outs.
“This policy package offers travel companies the opportunity to budget much more effectively and predict their cash flow.
“Each year companies incur legal costs ensuring their booking conditions, commercial and employee contracts are compliant and up to date. The new Travlaw packages will cover these costs, as well as the unpredictable costs of litigation. Everyone hates it when our clock starts ticking and we want to stop that.”
The ‘Travlaw Protect’ package has been created in association with specialist insurer Composite Legal Expenses.
Travel companies can pick from a range of package options, with protection offered against possible legal action from other travel businesses, employee grievances, consumer complaints and trading standards and other authority prosecutions.
Policy options include annual reviews of booking conditions and supplier contracts, unlimited telephone helpline guidance from Travlaw’s travel specialist lawyers, and advice on proposed promotional and marketing material.
Lacy added: “Taking advantage of this protection encourages travel businesses to look at all areas of their operations, from their booking conditions and commercial terms, and how they deal with complaints, to employee terms and conditions. This is a good way to encourage best practice across their business and the whole industry.”
by Phil Davies
Phil Davies
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