A travel industry law firm has launched a new insurance product allowing operators and agents to protect themselves against legal action.
The Travlaw Protect package has been set up by Travlaw with specialist insurers Composite Legal Expenses. It not only offers protection against possible costs incurred fighting claims in court but also provides access to travel-specific legal advice and support.
Travlaw partner Sarah Lacy said the new policy was inspired by the recent volcanic ash crisis which is expected to prompt a rash of court cases both from consumers and between businesses.
It is also an answer to the current trend among some insurance providers to include legal expenses cover in their policies which encourages consumers to take their complaints to court as opposed to dealing directly with the holiday provider.
Travlaw Protect offers businesses up to £100,000 of legal expenses insurance and, subject to the level of protection required, costs between a penny and 25 pence per passenger.
Lacy said the policy should cut the legal bills of Travlaw’s own top 30 spending clients by about 20%.
She said: “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.
“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.”