A NEW professional
insurance product
designed specifically
for retail travel agencies – to
protect agency owners – will
soon be launched in the South
African market.
Specifically, the insurance will
meet the need for cover in the
case of errors and omissions
made by staff (i.e. ADMs),
fidelity cover in case of theft by
employees, and directors’ and
officers’ liability.
Steven Jack, ceo of Jack
and Seach Insurance Brokers,
which underwrites the Default
Insurance Product (DIP)
scheme in South Africa, says
that while rolling out the
DIP the company received
numerous requests for such a
product geared specifically to
travel agents.
While the DIP covers
agencies in the event that
they default against airlines,
the new insurance product is
aimed at introducing a new
level of standards into the
industry, says Charmaine
Brogden, who represents Jack
and Seach in the SA market.
Vanya Lessing, ceo of the
Sure Travel Group, says that
while the directors of most
agencies would have liability
insurance, insurance that
caters for employee negligence
would be welcomed. “The
uptake of the product would
depend a great deal on its
affordability,” she says.
Marco Cristofoli, md of
Harvey World Travel Southern
Africa, agrees, saying that
while some of these aspects
of the product are already
offered in the local market,
a product such as this
would provide agents with a
great deal of peace of mind,
especially in current trading
conditions when aspects of
dealing with suppliers are
beyond agents’ control. For
example, an insurance product
that offers third party cover
would be particularly welcome
given the number of suppliers
within the industry that have
recently defaulted, he says.
Even though these products
are already available through
different insurance providers,
none of the products are agent
specific, says David Pegg, md
of Sure Viva Travels. It would
also be more convenient to
place all insurance needs
under one company rather
than spreading them out
across different providers,
he says.
The new product is expected
to be available in the market
soon.
