When you’re running a travel business, determining whether a customer needs travel insurance is often impossible since many personal risks remain unknown to the advisor. Instead of speculating on a client's specific needs, it is more effective to focus on the concrete details of their trip, such as total costs and potential cancellation penalties.
By quoting the specific financial penalties a customer faces if they cancel before departure alongside the cost of a policy to cover those losses, advisors provide a clear value proposition. It is recommended to offer comprehensive insurance that includes a full range of benefits, such as medical coverage, baggage protection, emergency evacuation, and travel assistance. This approach ensures that the customer is protected against unforeseen issues the advisor may not be aware of, such as the failing health of an elderly relative.
When booking through a supplier, advisors should always offer the supplier's internal insurance first. If a customer requires additional coverage, advisors can provide quotes for third-party policies through many different companies with selective offerings.
To provide the best service, advisors should become familiar with their strategic travel insurance partners and their specific policy inclusions. You should practice sending test quotes to understand the unique benefits of each provider. Since customers often have a preferred insurance brand from past experiences, maintaining expertise in all four ensures the advisor can meet various traveler needs.
Suppliers often provide cancellation insurance with specific coverage limits. For instance, luxury supplier Abercrombie & Kent offers "Cancel for Any Reason" coverage of up to $50,000 per person. If a customer’s trip cost exceeds this maximum, advisors can sell a third-party policy to cover the remaining balance.
Advisors should quote and offer insurance at the time a customer is ready to make a payment. For example, if a customer purchases non-refundable airline tickets to London and Paris but plans to finalize hotels later, coverage should be offered immediately rather than waiting for the full itinerary to be complete.
If an unexpected event occurs before the trip is fully booked, a policy ensures the traveler can receive a refund for covered reasons. Advisors can then modify the existing insurance policy to add more coverage and collect additional premiums as the rest of the trip is finalized.
Types of Travel Insurance
If you’re going to offer travel insurance, it’s important to know your stuff—the different types available and what they entail:
Do Not "Sell" Insurance: Legally, travel advisors are generally not licensed insurance advisors. They should frame the conversation around "offering the option to purchase travel protection" rather than "selling" a policy.
Avoid Decoding Policies: Advisors should never attempt to interpret or "decode" complex policy language for a client. Doing so can lead to misstating coverage, which creates liability if a claim is denied. Instead, clients should be directed to the insurance provider's customer service for specific coverage questions.
"If They Decline, Make Them Sign": If a client chooses not to purchase insurance, it is essential to have them sign a Travel Insurance Waiver. This document confirms the client was offered coverage and releases the advisor from liability for financial losses resulting from the decision to travel unprotected.
Primary vs. Secondary Coverage: Advisors should help clients understand if a policy is "primary" (pays out first) or "secondary" (pays only after other insurance, like a home or health policy, is exhausted).
Medical Evacuation Importance: For international travelers, advisors should emphasize medical evacuation and repatriation coverage, as domestic health insurance (including Medicare) rarely covers these costs, which can reach $100,000 or more.
Prepare for Claims Before Departure: Advisors should encourage clients to save the 24/7 assistance hotline and their policy number in their phones before they leave. In an emergency, the assistance provider should often be the client's first call rather than the insurance company itself.
Reframe the Cost: If a client objects to the price, advisors can reframe it by breaking the cost down into a daily amount (e.g., "$25 per day to protect a $3,000 investment") or comparing it to the cost of a daily lunch.
Ultimately, a travel advisor’s goal is to ensure a seamless experience from the first deposit to the flight home. By consistently offering comprehensive protection and staying familiar with strategic partners, advisors provide the security clients need to travel with confidence. Remember: you aren't just selling a policy; you are protecting your client’s memories and their investment.