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Get Under Cover! Why errors and omissions insurance coverage is essential to your business There are a few basic things you need to know about being a home-based travel agent. One of them is that it’s essential that you have errors and omissions (malpractice) insurance in order to protect yourself and your host agency. You may be covered under your host agency’s policy, but that needs to be confirmed, in writing, when you enter into an agreement with your host.
If you’re incorporated, however, you cannot be part of your host agency’s errors and omissions policy, and you must have your own insurance coverage. Errors and omissions insurance is usually written with a stated deductible of $500 to $2,000 and a face value of $500,000, and often $1 million or more. You need to keep in mind that the deductible is essentially a form of self-insurance—the lower the deductible, the higher the premium. I strongly recommend that home-based agents have a deductible of at least $1,000, which should cover nuisance-type claims.
In my experience, most errors and omissions claims are filed in small claims court, and the jurisdiction of that court will vary state by state. For example, in Florida a claim of $5,000 or less can be filed in small claims court. In the event of a claim, the deductible amount is paid by the insured, and the insurance begins once the deductible has been met, up to the face value of the policy. The insurance carrier also provides, at its own expense, lawyers to defend the travel agency or travel agent from the claim.
The prudent approach in today’s litigious society is for you, as a home-based agent, to obtain errors and omissions insurance to protect yourself. Any aggrieved client is likely to sue you and your host agency for actual as well as compensatory damages for the aggravation caused by errors, omissions or negligence of you or your staff. Negligence is defined as the failure to do what a reasonable, prudent person would do in a given situation or performing acts that a reasonable, prudent person would not have performed in a given situation.
Unfortunately, there’s a general misconception among travel agents as to what errors and omissions insurance will cover. For example, it does not cover debit memos generated by an airline for ticketing mistakes, nor does it cover fraud or theft by employees. These types of claims may be covered under other types of policies, but are not covered by errors and omissions insurance.
Some examples of situations in which errors and omissions coverage would effectively protect you include the following:
In my experience, the most common types of errors and omissions claims involve visas, airline ticketing issues, failure to obtain parental consent to take a child out of the country and failure to offer travel insurance. I always recommend that the host agency and/or the home-based agent attempt to resolve a claim, particularly if the claim is a minor one. Some of my host agency and home-based agent clients have told me that they don’t believe they can afford errors and omissions coverage. However, they need to remember that without such coverage, they’re exposing themselves and their business to significant liability. Over the past 30 years, I have seen travel agencies go out of business because they couldn’t pay court-ordered damages that would have been paid if they had been covered by errors and omissions insurance. That’s why I strongly recommend that you check with your insurance broker or your host agency’s insurance broker to solicit as many bids as possible and explore all the options available. Then go out and get that coverage!
The Top Five Legal Issues: Here’s a cheat sheet of the key things that can affect your home-based business While the number of home-based agents continues to grow, there are questions that need to be addressed to make certain that each agent is running his or her operation in a businesslike manner. Here’s a quick summary of the top legal issues affecting you and your business.
State Licensing: A key area that unfortunately is sometimes overlooked by agents working from home (and one that I addressed in my column last month) is state licensing and registration. More than a dozen states now have some form of licensing requirements for sellers of travel. California is the most stringent of all the states, but Washington and Florida also have licensing laws that encompass a great number of travel-related industries. The remaining states have statutes that impact only certain segments of the industry. I recommend that you make sure your host agency is aware of the states in which your clients reside and ask that the host make certain it’s licensed in those jurisdictions.
Business Structure: You also need to consider a number of options for how your business is organized. There is no real “best approach” to selecting your business structure, but each decision you make must take place with the guidance and advice of your tax and financial advisors. I strongly recommend that you meet with your tax or financial advisor at least once a year to determine if your corporate structure is appropriate for your ongoing business needs.
Malpractice Insurance: I’m often asked why home-based agents need errors and omissions (malpractice) insurance. Although you may be covered under your host agency’s policy, this needs to be confirmed in writing when you enter into an agreement with your host, and it must be updated on a yearly basis at least. Keep in mind that if you incorporate your agency, you cannot be part of your host agency’s errors and omissions policy. You must have your own errors and omissions insurance coverage. I also strongly recommend that you have a deductible of at least $1,000, which should cover nuisance-type claims.
In addition, keep in mind that errors and omissions insurance will not cover debit memos generated by an airline for ticketing mistakes, nor does it cover fraud or theft by employees. And there’s one major errors and omissions carrier that will not cover employee mistakes that arise out of deposits or refund policies of a vendor.
Supplier Default: Another important issue that’s constantly raised by my clients working from home is supplier default. Fortunately, the number of supplier defaults has declined over the past several years, but as the industry is well aware, many well-known and well-established suppliers are no longer in business. There are some travel insurance policies available to consumers that cover supplier default, but these policies also include restrictions that specifically exclude certain suppliers. Furthermore, it’s unlikely that an agency’s errors and omissions or general liability policy will cover a client’s claim made as a result of supplier default.
Written Agreements: The issue that arises most frequently with my clients involves what needs to be in a written agreement defining the relationship between the host agency and an independent contractor, including the rights and obligations of each party. One of the unique features of an independent contractor relationship is that the host agency (or principal) cannot control what independent contractors sell.
On the other hand, the host agency can structure the financial arrangement in such a way that the independent contractor earns a higher fee for selling preferred suppliers. In fact, many of my host agency clients pay no commission if the independent contractor sells a non-preferred vendor. Keep in mind that the regulations with regard to independent contractors vary between the IRS and each state.
The key to the relationship with your host agency is to make certain that the agreement is in writing, including all rights and obligations. If you follow this advice, you will spend more time selling and earning revenue and less time dealing with issues that may impact your business operations. This will give you more peace of mind so you can focus on most important part of being a home-based agent—selling travel!
Licensed to Sell! What you need to know about state seller of travel registration and licensing laws State licensing and registration regulations are now facts of life in the travel agency business. That’s why you, as home-based agents, and your host agencies need to make certain you’re not in violation of any state statutes that may impact your operations. You also need to make sure you comply with any requirements in states where you need to be licensed.
More than a dozen states now have some form of licensing requirements for sellers of travel. California is the most stringent of all states, but Washington and Florida also have licensing laws that encompass a number of travel-related industries. The remaining states have statutes that affect only certain segments of the industry.
The California statute includes regulations and registration requirements for both in-state and out-of-state sales. If you reside in California, for example, you need to meet the requirements of the state’s law. But even if you and/or your host agency are located in another state, you can also run into licensing issues with California authorities if you either sell to residents of the state or have affiliates (i.e., home-based agents) located in that state.
I’ve had host agency clients who’ve been physically located outside of California but have independent contractors in that state, which brings both parties under the purview of the California statute. An out-of-state travel seller who makes minimal sales in California needs to make an economic decision as to whether it’s worthwhile to register with the state and pay the annual registration fee.
The California attorney general’s office has taken the position that anyone selling travel to California residents, even through the Internet, is required to comply with the state sellers of travel statute. In the attorney general’s opinion, as long as a California resident can book travel through a website, the website’s owner needs to be registered.
As a practical matter, however, if you’re simply making information available to the general public—and are not involved with booking travel for California residents—you shouldn’t have any issues with licensing requirements. If you’re not specifically selling to California residents, in my opinion you aren’t required to register with the attorney general’s office.
The Florida statute provides registration exemptions for ARC-appointed travel agencies that have had the same ownership for at least three consecutive years. Thus, if you affiliate with a host agency that falls within this exemption, you wouldn’t have any registration requirements.
It’s extremely important to remember that a state sellers of travel registration number needs to be displayed on your website or your host agency’s website or other advertising before selling to citizens of that state. That’s especially true when you sell to citizens of Florida, California and Washington.
Washington and Florida, for example, have launched enforcement actions against sellers of travel who have not displayed their travel registration numbers. These states, and several others, make a vigorous effort to enforce the provision requiring the seller of travel to display a registration number because of their interest in protecting consumers and also because of the revenue that accrues from the registration itself.
In general, state sellers of travel statutes also include requirements involving deposits, possible escrow accounts and other administrative tasks that must be met if you or your host agency is physically located in one of the states requiring sellers of travel registration. Most of the requirements are not financially onerous, but are administrative in nature.
As an agent working at home, you need to make certain that you’ve complied with the necessary registration and reporting requirements and confirm that your host agency has also complied as well. Registration fees, particularly those for out-of-state travel sellers, are generally reasonable. If you’re a significant producer, your host agency may even pay the registration fee or reimburse you for it.
A word of caution: if you or your host agency sells travel in a state in which you or your host isn’t registered, you can be exposed to both criminal and civil penalties. That’s why it’s more prudent and economic to comply with these registration requirements than ignore them.
Protecting Group Sales: Group travel can be highly lucrative as long as you limit your liability Most segments of the travel agency community, including home-based travel agents, have made a concerted effort to expand their marketing to focus on group business. This has occurred because of the enhanced revenue available, along with the fact that it’s an untapped market in many geographic regions of the country. At the same time, however, selling travel to groups raises some issues that you, as an agent working from home, and your host agency need to address to protect yourselves and your clients.
If you’re selling to a group that has members located across the country, you may encounter state seller-of-travel licensing issues for group members who reside in states that license travel agencies, such as California, Washington and Florida. For example, if you and the group leader are located in Maryland but other members of the group are located in Washington, California or Florida, you and your host agency may have licensing issues with any of those states because you’re trying to sell travel to residents of those states.
If the group is traveling out of the country and includes minors, you need to make certain that if only one of the parents is traveling with the minor child, he or she has a notarized statement from the other parent that the traveling parent is authorized to take that child out of the U.S. Without it, it’s very possible that the parent and child will not be allowed to board a flight leaving the country.
In addition, you and your host agency should have a provision in the group contract that you have the right to contact individuals in the future, even if the group fails to use your services again or never travels as a group again. My clients find that group travel is an excellent source of future individual business. However, some group travel leaders will try to prohibit this type of language in any agreement in order to restrict future contact with members of the group.
Also, remember that the group leader, who may be the only contact you have with the group, cannot sign a consumer disclosure notice for the entire group. A disclaimer needs to be signed by each individual traveler, which may not be practical. Under these circumstances, it’s essential that you and your host agency make certain that such disclosure notices are returned to you or the host agency at the time each booking is processed. This is extremely important because of the requirement that travel insurance be purchased within a certain number of days within the time the reservation deposit is paid in order to avoid waiving any preexisting medical conditions or other rights.
The best consumer disclosure notice includes the price of the insurance in the trip with a request that group members deduct that amount if they don’t want the insurance. If a group member deducts the amount of the insurance, he or she has declined the offer of travel insurance. If the individual includes the amount, he or she has accepted that offer.
Under either of these circumstances, no signature would be necessary because the individual client’s action or inaction serves as the disclaimer with regard to either acceptance or rejection. However, some states don’t allow insurance to be included in the price of the trip, even if the client can opt out. Thus, you need to check with your insurance company to determine what statutes are applicable in your state.
If the group trip involves any high-risk activity or even a substantial amount of physical activity, I generally recommend that the disclosure notice suggest that clients check with their medical providers to determine whether they have the physical capacity to engage in such activity. Under no circumstances do I recommend that you ask for, receive or transmit medical records between the client and the third party, which could raise significant liability for both you and your host agency.
Finally, it’s essential that you protect yourself when selling group travel to make certain the revenue generated is sufficient to offset any future potential liability that can arise from group sales. Such liability generally can be minimized or eliminated by following prudent business practices as suggested above. In the end, selling group travel can be a highly lucrative endeavor for you and your host agency as long as you take steps to protect yourself.
The Duty to Disclose: Why consumer disclosure notices remain key to minimizing your liability t’s something you must face constantly as an agent working from home: How do you minimize liability and protect yourself when dealing with clients as part of the selling process? This involves every booking you make.
Unfortunately, the challenge for most of you is that you rarely, if ever, meet your clients in person these days. While the use of consumer disclosure notices (disclaimers) is very common in the travel industry today, the key challenge is how to have your client acknowledge these disclaimers when most contact is either done by email, phone or fax.
One important way to protect yourself and your host agency is by using consumer disclosure notices, even without personal contact. You can send an email to clients with a disclaimer as an attachment and request an e-mail confirmation from your client that he or she has read the consumer disclosure notice, understands its terms and conditions, and that any questions have been answered satisfactorily. The return email will have the same legal effect as a signature on a hard copy of a disclaimer. You may also choose to have a signed acknowledgment by fax or email.
While a travel agency can use a consumer disclosure notice for many different purposes, I strongly recommend you use these notices on all occasions. Use them to confirm that travel insurance was offered to your client; use them to indicate that the paying by credit card is strongly recommended; and use them to reconfirm that the you and your host agency are merely agents of the supplier and not a principal.
Generally, under federal law if a credit card is used to pay for goods and services that were not delivered, the cardholder has certain rights to obtain a credit if payment has been made, or alternatively have the charge removed if payment has not been made. I’m not suggesting that you guarantee your client’s funds will be protected if he or she charges the payment to a credit card. Rather, I’m recommending that you suggest in the disclaimer that using a credit card to pay for travel arrangements “might provide more protection” than would apply when paying by cash, writing a check or using a debit card. In fact, there are virtually no protections when using a debit card, because federal laws have not caught up with the widespread use of debit cards over the past decade.
It also is essential that you obtain written authorization, such as a signature, email, or fax authorizing the charge to a credit card. If the sale involves airline tickets that are processed through ARC, you must follow the format from the ARC Industry Agents’ Handbook.
When travel involves any arrangement not processed through ARC, I recommend there be a written authorization to charge to a credit card. There is, however, no specific format that is required as in the sale of air transportation through ARC. In addition, it’s important that you routinely offer travel insurance to all of your clients and that they either accept the coverage or sign a disclaimer indicating that they have been offered the insurance but have declined.
It also is worth remembering that when selling group travel, the leader of the group cannot sign the disclaimer for members of the group. Instead, each individual needs to sign a disclaimer on his or her own behalf, and you must retain the records. Furthermore, if couples traveling together are not married, each must sign a separate disclaimer in order for such disclaimers to have any legal effect.
The consumer disclosure notice should be written in simple, straightforward language. It should be as short as possible and still cover all of the desired items. Make it easy to use by creating a template. Many home-based agents create disclaimers to cover many different situations and merely fill in the blanks at the time of the transaction.
Without a signed disclosure notice or acknowledgment of the same, there’s significant liability both for you as a home-based travel agent and for your host agency, if you work with one as part of the selling process. A consumer disclosure notice is a very common industry practice in today’s litigious society. The fact that you’re operating out of your home shouldn’t be a deterrent to following prudent and sound business practices that minimize liability.
Room for Liability: How to negotiate the best group contracts with hotels and resorts The single most important legal issue that you face as a home-based travel agent in booking hotels and resorts occurs when you negotiate group contracts. In all cases, I don’t recommend that you sign the contract on behalf of the group. Rather, the contract should be between the hotel and the group that is your client. The contract also should include specific language about your commission, as well as the payment schedule for that commission.
Many of my travel agent clients don’t like to include this particular language in the agreement since they may have marked up the price. But in my opinion, the liability far outweighs the potential additional revenue. Historically, hotels have had standard agreements that were provided by their corporate office. The group, meeting planner or travel agent signed the contract as it was presented.
However, I don’t believe this situation currently exists in many markets, since the industry has undergone dramatic changes due to economic conditions. It’s not unusual for specific clauses to be changed in agreements, typically through the use of a standardized addendum that has been reviewed and approved by the hotel’s legal department and senior management. For group or meeting contracts, some of the issues typically covered in an addendum include cancellation provisions, food and beverage clauses, and topics such as fees, surcharges, payment terms and attrition penalties.
While the economy has continued to recover (albeit slowly), it’s still clearly a buyer’s market when negotiating hotel contracts. A growing number of hotels are willing to accept modified language, even if it conflicts with the language in their standard agreement. The only way this can be resolved is to specify in the agreement which parties’ language will override the other in the event of a conflict.
As with any negotiations, market conditions influence the process, including whether the meeting or group event will be held in a slow or a peak season, or if the property has a significant number of unsold rooms during that timeframe. I’m also aware of a recent situation in which a travel agent signed the contract and identified herself as an agent of the group. When the group cancelled, the hotel sought damages from her–and there’s a significant possibility that she will be held responsible.
The key issue in negotiating agreements with hotels is to avoid disputes that can lead to litigation. Therefore, it’s extremely important that the terms and conditions of the contract and any addendum be reviewed and agreed to by both parties when the contract is signed. As the booking travel agent, you need to make certain your group has had an opportunity to review the contract and that a representative of the group has signed it.
Remember that if the group has members located across the country, you may encounter state seller of travel licensing issues if they reside in states that license travel agents, such as California, Washington, Florida and Nevada. In my experience, most agents typically don’t have a problem in these types of situations. However, if there are a significant number of group participants residing in states with state seller of travel licensing, it may become a very important issue.
Both you and your host agency should have a provision in the contract that gives you the right to contact individuals who travel with the group in the future. Group travel is an excellent source of future individual business. It also isn’t unusual for group leaders to try to prohibit this type of language in order to restrict future contact with members of the group.
If the group booking involves a significant number of room nights, it’s probably worthwhile discussing the possibility of obtaining insurance to protect the group in the event penalties are incurred through failure to meet the terms and conditions of the contract. I also recommend that there be language in the agreement that prohibits the hotel from contacting the group directly for some period of time to avoid the possibility of the group booking the same property in the future but not paying you commission.
If you follow the guidelines as set forth above, you can protect yourself from a liability standpoint as well as enhance your revenue potential in booking groups at hotels and resorts.
The Right Host: What to consider when affiliating with a host travel agency When selecting a host agency, it’s extremely important that you have an understanding of the rights and obligations of both parties. There also needs to be an opportunity for two-way communication when negotiating an agreement.
Unfortunately, in my experience, many agents working from home select a host based solely upon the compensation level offered and don’t consider the other things that are extremely important when selecting a host. I do not believe that’s the most prudent course of action.
There are a number of factors to consider that are equally important. These include, in no particular order, the reputation of the host agency; the host agency’s affiliation with a consortium, co-op or franchise group; the back-office support provided (and if any costs are associated with that support); and whether commissions are protected if your client books directly with the host agency in the future.
Many host agencies emphasize education, training and support in seeking to attract qualified home-based agents. This creates a win/win situation for both parties. Some hosts charge their outside agents for back-office and other support services. Thus, it’s possible that a host agency that provides a lower commission level might actually provide a higher payment if support fees are included as part of the agreement.
Both you and your prospective host agency need to make absolutely certain that there’s a written agreement between the parties and that any and all documents set forth in clear and concise terms the rights, duties, obligations and responsibilities of both you and your host. Under no circumstances can there be a restrictive covenant under an independent contractor agreement.
If the host agency doesn’t want to provide a written agreement, I would strongly recommend you look elsewhere for an affiliation. The written agreement should provide protection to both parties. It should serve as a red flag that the host agency isn’t operating in a prudent business manner if it doesn’t have written agreements with its independent contractors.
In my experience, some host agencies restrict independent contractors as to what they can and cannot do when it comes to contacting clients. The host agency also tends to exercise some form of control. Either of these activities would start to erode the independent contractor relationship. Again, this should be a red flag when selecting a host agency.
In most states, any exercise of control by a host agency over a home-based agent would probably indicate an employer/employee relationship as opposed to an independent contractor relationship. The host agency has a right to set forth language in the written agreement that makes certain you don’t disseminate any of the agency’s proprietary or confidential information. However, that prohibition would not infringe upon the independent contractor relationship.
In addition, the clients you bring to the host agency remain your clients, although it’s not unusual to have language in the written agreement indicating that the host agency has the right to service your client, if requested to do so, even if you have moved your business to another host agency.
Other issues that need to be addressed when selecting a host agency include how the expenses you incur will be handled; whether the host has the right to offset against commissions for debit memos or other non-reimbursed expenses; how commissions earned on the sale of travel insurance will be allocated (if at all); and whether and how service fees are shared. It’s essential that the agreement confirm that the client’s passenger name records belong to you and not the host agency.
After you’ve selected a host agency through the due diligence process, all issues should be finalized and put into writing. Under no circumstances do I recommend that there be solely verbal understandings or agreements. All negotiated items should be set forth in a written agreement. It should be between two and four pages, at most, depending upon the complexity of your business operations and those of the host agency. In general, the host agency is responsible for preparing the agreement. You have a right to have an attorney review it. In the end, if you choose a host agency in a prudent manner, there will be a much greater chance for a successful and long-term relationship.
The No Default Sale! How to protect yourself, your host and your client when selling a tour
Most agents working at home are very knowledgeable about selling tours and packages, and these sales create an excellent revenue stream. At the same time, there are certain issues that you should be familiar with when selling tours and packages in order to protect yourselves, your host agency and your customer.
As an initial matter, you need to be familiar with the terms and conditions of the tour or package so that correct information can be provided to your clients. For example, if the cancellation penalties apply within 60 days of travel, you need to make certain any consumer disclosure notices follow the same timeframe.
The most important issue you face in selling tours and packages is to make certain that the issue of supplier default has been addressed. The number of these defaults has continued to decline over the past several years, but, as the industry is aware, many once well-known, long-established suppliers are no longer in business.
It also is essential that your consumer disclosure notice set forth the principal-agency relationship between you as the travel agent and the supplier in order to minimize potential liability if there is a problem with the travel arrangements. Included in the consumer disclosure notice should be a statement indicating that your client was offered travel insurance and that you recommended the use of a credit card. You also need to put in language reconfirming that you and your host agency are merely agents of the supplier and not a principal.
Generally, under federal law, if a credit card is used to pay for goods and services not delivered, the cardholder has certain rights to obtain a credit if payment has been made or, alternatively, they can have the charge removed from the credit card if payment has not been made.
The best protection against supplier default for you, your host agency and your client is to use common sense and maintain an awareness of industry developments that may affect suppliers. You need to speak with other agents, particularly those in different geographic regions of the country, to keep abreast of changes in a supplier’s operations. For example, these could include consistent complaints from consumers about being “walked” to another, less desirable property, changes in acceptance or overall refusal to accept credit cards, and feedback from agents and their consumers that specific items described as part of a package were not provided or that there were significant substitutions.
In my experience, the biggest warning sign of a financial issue is the supplier’s refusal to accept credit cards or if that supplier runs a significant, deeply discounted sale for which credit cards are not accepted. Historically, these circumstances have indicated that the supplier is on shaky financial ground and will ultimately go out of business.
The U.S. Tour Operators Association (USTOA) has a program in place to protect consumers who book with one of its members. Such protection will not likely cover a 100 percent refund to each consumer if a supplier goes out of business, however, because there is a cap on the coverage.
There are some travel insurance policies available to consumers that cover supplier default. But there are generally restrictions to such policies, and some suppliers are specifically not covered by them. Furthermore, it’s unlikely that your errors-and-omissions or general liability policy will cover a claim by a client as a result of a supplier default.
It’s extremely important that you and your host agency book preferred suppliers on the assumption that your consortium or franchise has negotiated a preferred-supplier agreement that includes updates on financial information about the supplier. While this does not provide a 100 percent safety net or guarantee of performance, it’s certainly better than booking suppliers for which there are no preferred relationships or continued business dealings.
Unfortunately, some of my clients have been involved in disputes with consumers as a result of supplier default. But many have avoided problems because they were able to detect warning signs of potential financial difficulties for a particular supplier before that company’s default.
Although there’s no guarantee that you can protect yourself and your clients from supplier default, putting in place sound business practices can minimize the risk.
Switching Hosts – How to minimize conflicts when you change your host agency affiliation While I’ve often recommended in this column that independent contractors have a written agreement with their host agency, such a contract may not resolve every situation. In my experience, problems may still arise if and when that agent wants to affiliate with another host. The most important issue to remember for both the host agency and the independent contractor is that the clients need to be protected and their interests come first.
Unfortunately, over the last three decades I’ve seen numerous situations in which independent contractors with a written contract decide to switch affiliation from one host agency to another. They usually want to move all of their bookings with them so their commissions are protected. Generally, in these situations the original host agency often advises the suppliers involved that it would object to the bookings being moved and would make every effort to collect the commissions from the vendors. The original host believes it’s entitled to these commissions since the bookings were under deposit before the independent contractor attempted to move them.
In two situations that I’m aware of, the contract between the host agency and the independent contractor covered these circumstances. In several other situations, the written agreement between the parties did not cover the specific situation because either the parties didn’t use an attorney to draft the agreement or they used an attorney who was not familiar with travel industry practices. Essentially, in these circumstances, the client was caught in the middle of the dispute.
In one of these cases, the independent contractor advised the client to cancel the bookings and re-book with a new host agency. When the independent contractor received authorization to do so, the pricing had changed and the client was asked to pay an additional amount, which he refused to do. Ultimately, the independent contractor who had recommended canceling the booking to protect her commission ended up paying the difference and essentially losing any revenue earned on the sale.
In the another dispute, the original host agency sent a letter to both the independent contractor and the new host agency advising that it would sue both parties for the full commission because the booking had been transferred. The new host agency immediately terminated the agreement with the independent contractor to avoid any liability issues.
As a result of economic conditions over the past several years, even as the economy has slowly improved, these problems have tended to come up more frequently because every party wants to protect commission income. Again, it’s essential that the client’s interest be protected in any dispute between the original host, the new host agency and the independent contractor.
A well-drafted agreement contains language in which the independent contractor authorizes the initial host agency to advise any other host agency that he or she reserves the right to protect his or her commissions and also to serve the clients in the future. While the client belongs to the independent contractor, if there’s no language in the agreement to prohibit solicitation of the client in the future, there clearly would be an effort by the initial host agency to try to keep that business.
In at least two of the situations described above, the independent contractors had an agreement that they would receive a residual commission from bookings by their clients with the original host agency, even if they moved their affiliation. While this commission was less than the normal split, it was essentially a payment by the initial host agency to the independent contractor for bringing the business to the agency.
As an independent contractor working from home, you also need to remember that disputes of this type are not covered under errors-and-omissions insurance policies. Thus, there would be no insurance coverage in the event the client becomes dissatisfied and tries to take action against either you or your former host agency.
There’s a very real possibility that disputes will arise between independent contractors and their host agencies, especially when the independent contractor moves to a new host. So a written agreement that covers any move to a new host, while not resolving all disputes, remains essential to minimizing these conflicts.
The Law of the Sea – What liabilities you and your clients face when booking a cruise As a travel agent working from home, you need to be aware of some of the issues that could impact your cruise clients. Every cruise line has a contract that appears either in the brochure and/or in the cruise documents provided to your clients prior to sailing. Unfortunately, even if the client doesn’t read the contract or, in fact, if he or she reads it after it’s too late to cancel without penalties, the U.S. Supreme Court, in a case involving Carnival Cruise Lines, found that the contract is binding between the line and the passenger.
A typical provision in a cruise ticket contract requires the passenger to file suit in federal or state court in Dade County (Miami), Fla., and in a few instances King County (Seattle), Wash., or Los Angeles, Calif. It does not matter where the passenger lives, but by booking the cruise he or she has consented to have jurisdiction in one of those venues.
Cruise ticket contracts also generally provide that for any claim relating to loss or damage of property, the passenger needs to notify the cruise line within a certain amount of time (10 days is typical) after the termination of the voyage and commence the suit within six months after the ship has docked. The passenger specifically waives any rights to the longer period of time allowed by Florida, Washington or California state law.
The same ticket contracts also specifically state that the cruise line will not be responsible for any direct or indirect expenses incurred by the passenger for any reason. Those expenses include lodging, meals and transportation if the passenger fails to board the vessel on time, even if the cruise line has provided the air transportation as part of an air-sea package. The cruise line also has the right, at any time and without prior notice, to cancel, advance, postpone, or deviate from any scheduled sailing or port of call for any reason whatsoever without being liable for any loss whatsoever to the passenger.
In the event of a personal injury, illness or death, the passenger is required to give written notice to the cruise line within six months from the day the accident occurred and must file suit within one year from the date of the cause of action, regardless of what timeframe (statute of limitations) may exist under state or federal law.
Unfortunately, these provisions have consistently been upheld by the courts as a binding contract, even if the passenger never received the information or received it after cancellation penalties would apply if he or she objected to the provisions. The mere fact that a passenger sails on the cruise is determined to show the consent of the passenger to the provisions.
The most common liability issue involving you is when your clients book the airfare themselves and/or use frequent-flyer miles to get to the point of embarkation for the cruise. It’s very important that you advise clients in writing that they must be at the port prior to the embarkation deadline, and that if they miss the sailing, then any and all expenses related to joining the ship at another port are their sole responsibility. This issue can be addressed in a simple and straightforward manner through the use of a well-written consumer disclosure notice.
Unfortunately, over the past three decades I’ve seen numerous examples of agents who have not advised their clients that if air is booked separately by them, the cruise line has no liability if the clients fail to get to the ship on time. To protect yourself, you should make sure your client signs a consumer disclosure notice, which should be no more than three to five lines, advising of the date, time and place of embarkation. Your client also should acknowledge in writing, by fax or email that he or she has received the consumer disclosure notice and understands its provisions.
Many host agencies and home-based agents are aware of the need for a consumer disclosure notice but are unsure of how to implement the process. I strongly recommend that the consumer disclosure notice be on a separate piece of paper or set forth in bold print if it’s included with other information being given to the client.
I’m certainly not suggesting that you or your host agency provide legal advice to your clients about the cruise ticket contract. But you should be aware of the provisions in the cruise line contract in the event one of your clients is injured or has property damage or loss so you can respond to any questions from your client.
How to minimize exposure when a supplier like Cruise West goes under The recent demise of Cruise West has raised a number of important issues for you as travel agents involving both how to deal with companies in similar circumstances and how to protect yourselves in the future.
First, it’s worth remembering that Cruise West did not file for bankruptcy, but merely closed its doors and canceled all of its operations. One interesting aspect of the Cruise West business plan was that 100 percent full payment was due at the time a reservation was made, which could have been a year or more in advance of the actual travel.
I’ve spoken with dozens of home-based agents and travel agencies throughout the country since Cruise West ran into financial problems. It appears that there were essentially three different steps that these agencies took to try to protect their clients.
Unfortunately, the least effective strategy was to sell trip protection offered by Cruise West. I’m aware of one consumer who paid $27,000, thought he had trip insurance protection, and, in fact, only had travel protection, which became worthless when Cruise West shut its doors.
Other agents had their clients pay by credit card, which usually might provide some protection because the traveler can be reimbursed for the cost of a trip that will never take place. Still other agents sold travel insurance that covered Cruise West so long as it was taken before coverage of the cruise line was discontinued by travel insurance companies.
The least beneficial scenario, and the one that will lead to significant liability for agents, was the selling of Cruise West trip protection. It’s important to remember that such trip protection is not insurance, and is backed solely by the good faith and financial stability of the supplier offering it, which in the case of Cruise West now means it has no value.
While some observers say the only issue for agents in the Cruise West case was that they would lose commission on the sale, I believe there will be significant liability for those agents who either did not sell travel insurance or suggest that their client pay for the trip by credit card, or who unfortunately sold trip protection.
Again, it’s valuable to review the steps that you must take to minimize liability and protect yourself when dealing with suppliers. First, I recommend that a consumer disclosure notice be used for many different purposes, including a confirmation that travel insurance was offered to the client. I also strongly recommend that you ask your clients to pay by credit card. You also need to reconfirm that you and your host agency, if you have one, are merely agents of the supplier and not the principal.
Generally, under federal law if a credit card is used to pay for goods and services not delivered, the cardholder has certain rights to obtain a credit if payment has been made. Alternatively, the cardholder can have the charge removed from the credit card if payment has not been made. I recommend that you suggest in the disclaimer that using a credit card to pay for the travel arrangements might provide more protection than when paying by cash or writing a check.
I’m aware of one circumstance in which a travel agent charged the client’s credit card based upon verbal authorization, but had no such authorization in writing. This practice will most likely lead to the travel agency being sued by the client. It’s essential that you obtain something written that authorizes a charge to your client’s credit card.
Any consumer disclosure notice should be written in simple, straightforward language, and as short as possible. Make it easy to use by creating a template. Many agents create disclaimers to cover many different situations and merely fill in the blanks at the time of the transaction.
Without a signed disclosure notice or acknowledgment of the same, there’s significant liability both for you and your host agency if you work with one. It’s a very common industry practice to use consumer disclosure notices in today’s litigious society. The fact that you are operating out of your home should not be a deterrent to following sound business practices designed to minimize liability.
Unfortunately, in the case of Cruise West, I believe there’s exposure for a number of agents based upon the fact that travel insurance was never offered, the use of a credit card was not recommended, and Cruise West trip protection was sold to the customer.
How to protect yourself when the chief attraction for a group booking cancels
Group travel remains one of the most lucrative areas for agents working from home. Some groups are developed because they have an affinity for a particular activity or personality, such as a celebrity chef. I recently received an email from a home-based agent raising a rather unique and important issue involving the sale of group travel. The agent asked me how she could protect herself and her host agency under the circumstances outlined below.
The agent indicated that she has been very fortunate to pair up with a celebrity chef and had organized several culinary tours to different European destinations over the past few years. On a tour she recently organized, approximately six weeks before departure, the celebrity chef’s father had open-heart surgery, and there was a real possibility that the chef would be unable to travel. While this tour proceeded as planned and advertised, the agent inquired what she could do in the future to protect herself and her host agency should this type of situation again arise and the chef was not available to travel.
She told me that she had taken out travel insurance for the celebrity chef in the belief that it would cover any potential losses should the chef not be able travel. However, when she spoke to her travel insurance carrier, she was informed that such travel insurance would cover only the celebrity chef’s trip, which, of course, is how travel insurance policies are always written. It would not cover the entire group, should any of them decide to cancel because the chef could not travel.
There are several possible ways to cover these circumstances, but unfortunately none of them is ideal. While many states allow travel insurance to be packaged as part of a group tour, I don’t believe it would cover a circumstance where a member of the group decided not to travel because the celebrity chef (or similar attraction) could not be available. Thus, this type of protection would not address the agent’s concerns. Even if the agent provided travel insurance to the group’s members, it would not cover a circumstance where they were able to travel but chose not to because the celebrity chef had to cancel.
One way this agent could have protected herself would have been to include specific language in her brochure stating that if the celebrity chef becomes unavailable or is prevented from traveling, her agency would reserve the right to substitute another chef for the tour. When I discussed this matter with this agent, however, she advised me that most, if not all, of her clients would prefer not to travel with an alternate chef because the one featured is well respected, has a great personality and mixes well with the group.
When I reviewed all of the details of the group travel booking with her, it appeared that another alternative would be to ask her insurance broker for a quote to obtain a policy to cover the entire group in the event they all decided to cancel, including refunds to the clients and reimbursement to the agent and the host agency for payments already made for the trip. However, while this type of insurance is available, it’s generally quite expensive. This would obviously increase the cost of the trip, which might have made it cost-prohibitive for some of the group’s members.
Another option would have been to disclose up front that if the celebrity chef is unavailable due to a medical or other type of emergency, the trip would still go forward. The group participants would need to acknowledge that they understood that there was a remote possibility that the celebrity chef would not be available. This disclosure would specifically address the agent’s concerns. In this case, however, the agent didn’t believe this was a viable alternative because she thought such language would discourage individuals from booking the trip. She believed the celebrity chef was really the only reason members of the group were traveling in the first place.
Now I know that the above suggestions might not be ideal for this group travel situation. But regardless I still recommend having some coverage in place to protect the agent and the host agency from what could have been a financial disaster. At the very least, I would recommend some exculpatory language in a disclaimer indicating that a trip such as the one discussed in this column would take place regardless of the availability of the featured guest.
How to market your services legally on the web…and more!
Most of my travel agency clients reach potential customers by marketing in a variety of ways, including through the Internet. Indeed, in today’s environment, many agents use the web to market their services. But it’s well worth remembering that advertising on the Internet can bring you within the requirements of seller-of-travel statutes that exist in many U.S. states.
In general, the U.S. government has jurisdiction only over deceptive trade practices in the airline industry, however most U.S. states have deceptive-trade statutes that address false marketing or advertising claims involving other parts of the travel industry. Thus it’s important for you not to have any deceptive advertising or be in violation of any seller-of-travel statutes when you market on the Internet.
It’s an accepted marketing practice to engage in “puffing”—i.e., making a statement about your service or offerings in a manner most favorable to you—as long as it doesn’t contain any false statements. For example, you can market yourself as being the “most experienced” travel agent in a given area. The term “most experienced” is subject to numerous interpretations, but that statement in and of itself would not be misleading or false. On the other hand, if you market yourself as being an expert on the South Pacific and you don’t have any expertise in that region, your marketing efforts could be considered fraudulent.
It’s very important when marketing or advertising to remember that more than a dozen states now have some form of licensing requirement for sellers of travel. While California and Florida are the most stringent of all the states, Washington, Nevada, Iowa and several other states also have licensing laws that encompass a number of travel-related industries.
Most of these states have a requirement that the seller of travel’s license number be displayed on any advertising. Furthermore, many of these states will make a vigorous effort to enforce that provision because of its consumer protection nature and also with regard to the revenue that accrues from the licensing itself. For example, the California attorney general’s office has taken the view that anyone marketing travel to California residents, even through the Internet, is required to comply with the state seller-of-travel statute. The theory behind the Internet requirement is that a website is viewed by residents of California.
In the attorney general’s opinion, as long as a California resident can book travel through the website, the seller needs to be registered. As a practical matter, if you’re simply making information available to the general public on the web and aren’t booking travel for California residents, I don’t believe there would be a problem regarding licensing requirements. But if you sell to California residents, California’s attorney general would take the view that you need to be registered.
I have host agency clients who are physically located outside of California, but have home-based agent affiliates in the state, which would put both parties under the California statute. In that case, any of their advertising or other marketing materials must display the California seller-of-travel identification number.
I have had clients in Florida, California and Washington who have used marketing programs that displayed no registration number. Once the states became aware of those violations, typically through consumer complaints, they sent a letter to the host agency or home-based agent with a violation notice. This is generally resolved with either a minimal fine, late penalty or a warning.
There’s another area where your marketing should match the products you promise. When you market cruises to clients, for instance, you need to adopt the same language used by the cruise line in its own marketing. That way there can be no misunderstandings about fuel surcharges or additional fees after final payment and related issues. Most suppliers also consider a final payment to be made not when the client pays the agent, but when the agent pays the supplier—and your clients need to understand that distinction.
It’s a prudent business practice to make certain that your advertising and marketing efforts are straightforward in order to avoid problems with state regulators over deceptive trade practices and, in certain states, over licensing requirements. So be sure to follow those requirements in all of your marketing materials.
Setting up a procedure to handle client funds is essential to your business
One of the key issues that you and your host agency need to resolve is how your clients’ funds are handled when booking travel. While the procedure can take many forms, it’s essential that you include the procedure in the agreement between you and your host agency.
In my experience representing both host agencies and home-based agents, I’ve seen many different ways of handling deposits as well as final payments from clients. I certainly have preferences from a legal standpoint as to how such monies should be handled. But from both a practical and operational sense, there’s really no single method that works best in every situation.
This column deliberately doesn’t examine payments for airline tickets, which must be done in accordance with the ARC Agency Handbook procedures in order to avoid liability to the ARC-appointed agency. Unfortunately, however, I have observed situations where funds for other travel bookings have been mishandled either deliberately or inadvertently. This, in turn, has caused significant liability issues for both the host agency and the independent contractor. Generally, there’s no insurance coverage for these types of problems, and so the parties may face significant potential liability.
Some of my host agency clients allow their independent contractors to accept payment by check payable to the independent contractor, who then deposits the check into his or her own account and then writes a check to the agency or vendor. I don’t see any advantages to this procedure, because it exposes both you and your host agency to liability if there’s a problem handling the funds or if the check is not honored by the bank.
I believe it’s a much more prudent practice for checks to be made payable to the host agency and merely transmitted by the independent contractor to the host for processing. I certainly understand that most agents working from home handle their own paperwork for reservations and documentation, but I believe it’s a better business practice to have the funds transmitted directly to the host agency. While I offer this advice to my clients, I am well aware of situations where they don’t follow my advice for a variety of operational, procedural or practical reasons.
In general, when a client pays by credit card, the credit card information should be forwarded directly to the vendor. But there are situations where the host agency may prefer to run the credit card through its own merchant account, deduct a commission and submit a net amount to the vendor either by credit card or agency check.
This procedure certainly enhances the agency’s cash flow, but it can create significant liability because the host agency then becomes the merchant in the event of a dispute with a client. The host agency also becomes responsible for any charge-backs that might occur. If the credit card charge is processed through the vendor, however, the host agency is “out of the loop” and a dispute would be between the vendor and the client.
I’m also aware of circumstances in which the host agency allows its independent contractors to process credit card payments through their merchant agreement and then submit an amount to the agency after having deducted their commissions. I strongly recommend that this procedure not be followed because it creates significant liability for all parties in the event of problems with travel arrangements, which could include dissatisfaction by the traveler, bankruptcy of the supplier or any number of other issues.
I’m certainly not in a position to advise my clients as to what might be the best option for cash flow from an operational standpoint. But I do try to make them aware of the potential liability if they implement procedures that might enhance cash flow. Once that advice has been given, it’s then a business decision, not a legal one, as to how to proceed. Nevertheless, every major liability issue that my clients have faced—at least for the past four or five years—has involved some action by an independent contractor, usually inadvertent, but on some occasions deliberate.
There’s no greater duty owed to the client by you or your host agency than to properly handle payments that are submitted for travel arrangements. I believe that duty requires both parties to review their current procedures and determine whether they’re maximizing the safety of their clients’ funds.
How to address the liabilities involved in selling upscale travel Over the past decade, home-based agents and host agencies have continued to expand their marketing efforts to attract more luxury travel business as a result of the continued diversification of the travel industry. Many consortiums, co-ops and franchisors also have positioned themselves as experts in the luxury travel market.
A recurring question I get from many of my home-based agent clients is whether there are any special issues that need to be addressed from a liability or other legal standpoint with regard to the sale of luxury travel. In my experience, the more expensive the travel, the greater the exposure that exists for the host agency or home-based agent in the event a problem arises.
For example, I recommend to my clients that they put language into a consumer disclosure notice when a visa is required for travel to a destination and, if so, sufficient time should be allowed to obtain the visa prior to the departure date. It’s essential that language of this type be put in a consumer disclosure notice when dealing with luxury travel customers because of the possibility that a visa or passport may not be received in time for departure. This could subject you to financial penalties if your client is unable to travel.
Not surprisingly, your potential liability can be significant when you sell luxury travel. This is why it’s extremely important that you offer travel insurance to your clients. The offer of insurance also should be included in a consumer disclosure notice, which must be acknowledged by your client as soon as possible. For any preexisting conditions to be covered under the insurance policy, it’s essential that you have procedures in place to make certain the insurance is either accepted or rejected within a specified number of days after a deposit on the trip.
This is probably the most important step you can take to protect yourself when dealing with a luxury traveler. Indeed, there would be significant liability to your agency if your client was never advised of the preexisting conditions provision and later had a claim that was denied by the insurance carrier. Keep in mind that the more expensive the travel, the greater the potential claim.
I also strongly recommend that any luxury travel be paid for with a credit card to provide additional protection to you, your host agency, your consortium and the traveler in the event of a vendor default. Over the past several decades, there have been a number of examples of suppliers of all sizes and reputations going out of business and leaving passengers stranded. This is why it’s critical that your clients obtain whatever benefits are available under the Federal Fair Credit Reporting Act by charging the trip to their credit card. With few exceptions, the traveler is entitled to a charge back to his or her card if the arrangements have been paid for, or a removal of the charge if they’re pending.
Again, I recommend that language be inserted into the consumer protection notice stating that you strongly recommend that a credit card be used for the travel arrangements. Keep in mind that state and federal statutes have not kept pace with the extensive use of debit cards. There generally are few statutory protections involving the use of debit cards.
I also advise my home-based agent clients to use a preferred supplier affiliated with their host agency, if they have one, in order to provide additional protection. I have found that preferred suppliers typically respond better than non-preferred suppliers when any problems arise with the trip.
I’ve noted on several occasions in this column that it’s essential that you have errors-and-omissions insurance, either as your own policy or through your host agency. If your home-based business is incorporated, you need to have your own policy. This is vital because of the potential exposure that exists based upon the high costs of luxury travel.
Your consumer disclosure notice should be written in simple, straightforward language. It also should be as short as possible, while still covering all of the desired items. It should state that you’re acting as an agent for a specific provider (principle) so the principle/agency relationship is disclosed in writing. The disclosure notice should be easy to use and based on a template. Many home-based agencies create disclaimers to cover many different situations and simply fill in the blanks at the time of the transaction.
Protect Your Group Sales Top of Page It is essential that agents working from home continually expand their marketing efforts to include group business because of the enhanced revenue that is available for selling such travel. However, selling travel to groups also raises some unique issues that you and your host agency need to address in order to protect both of the parties and your clients. In many instances, the only contact you will have with the group is through the leader, who can not sign a consumer disclosure notice (disclaimer) for the entire group. A disclaimer needs to be signed by each individual traveler, which may not be practical in many situations. Under these circumstances, it is essential that you and your host agency make certain that such disclosure notices are returned to you at the time each booking is processed. This is extremely important because of the requirement that travel insurance be purchased within a certain number of days from the time the reservation deposit is paid in order to avoid waiving any preexisting medical conditions as coverage under the policy. When you offer travel insurance to members of the group, the best possible consumer disclosure notice would include the price of the insurance in the trip with a request for the group members to deduct the amount if they do not want to purchase the insurance. If the group member deducts the insurance from the payment, they do not want the insurance; if they include it, they have accepted it. Under either of these circumstances, no signature would be necessary because the action or inaction by the traveler will indicate their preference. The only possible problem with this recommendation is that some state insurance commissioners do not allow insurance to be included in the price of trips. You will need to check with a representative of the travel insurance company to determine what is appropriate in your state. Another issue that is sometimes overlooked by an agent at home who is selling to a group located throughout the country, you may encounter state seller of travel licensing issues if the members of the group resides in states the register or license travel agents or promoters, such as California, Washington, Florida and Nevada. For example, if you and the group leader are located in Maryland, but other members of the group are located in Washington, California, or Florida, you may have licensing or registration issues with any of those states because you are trying to sell travel to a resident of those jurisdictions. If the group is traveling out of the country and includes children, you need to make certain that if only one of the children is traveling with a minor child, he or she has a notarized statement from the other parent and/or guardian that the traveling individual is authorized to take the child outside the United States. Without such a statement, it is likely that the passenger and the minor will be stopped before boarding a flight to leave the country. In addition, you and your host agency should include a provision in the group contract that you have the right to contact individuals who travel with the group in the future, even if the group fails to use your services again or travels as a group again. My clients find group travel to be an excellent source of future individual business. Some group travel leaders will try to prohibit this type of language in any agreement in order to restrict future contact with their members. You should also include language in your agreement with your host agency that if you switch your affiliation to another host, your previous host can not contact the group for a certain period of time. Obviously, the host agency may attempt to avoid this type of language. This is an issue that needs to be negotiated at the time you sign the contract in order to avoid future problems. If the group trip involves any high risk activities, such as white water rafting or even a substantial amount of physical activity, such as walking long distances as part of a tour, I usually recommend that the disclosure notice suggest that clients check with their medical providers to determine whether they have the physical capability to engage in such activity. Under no circumstances do I recommend that you ask for, receive or transmit medical reports between the client and a third-party, which could raise significant liability issues for you and your host. Finally, it is essential that you protect yourself when selling group travel in order to make certain the revenue generated is sufficient to offset any future potential liability that can arise from group sales. However, liability generally can be minimized or eliminated by following prudent business practices as suggested above. In the end, selling group travel can be a highly lucrative endeavor as long as you protect yourself.
A Guide to Legal Resources Top of Page In keeping with the theme of this issue, this column will provide resource information for host agencies and home-based agents. Host agencies and agents at home should have ample resources available to address any issues that arise regarding travel industry law, including liability, insurance, disclaimers, and numerous related issues that can arise on a daily basis. Interestingly, five or six years ago, it would have been extremely difficult for an agent at home to access this type of information because there were limited resources available to help agents who were not working in a “brick and mortar” travel agency. All of the major consortiums, co-ops and franchise operations have devoted significant resources to assist home-based agents as they attempt to actively recruit individuals with an established client base to their networks. Some consortiums, such as Virtuoso, aggressively advertise for independent contractors on behalf of the entire consortium and then put the agent in contact with individual agency members to negotiate their own agreements. The websites of agency groups such as Virtuoso, Ensemble, and Cruise Planners list resources available to home-based agents, including such topics as marketing, sales, insurance, liability, and prudent industry practices. The American Society of Travel Agents (ASTA) has numerous services available for its home-based agent members as do both the National Association of Commissioned Travel Agents (NACTA), and the Outside Sales Support Network (OSSN). OSSN indicates on its website that its “members only” section has 6,500 pages of information for its more than 7,800 members. While the number of trade show and industry conference meetings has been dramatically reduced over the last several years, the shows that are still presented include many valuable seminars for home-based agents which, in many instances, are their largest group of attendees. Cruise Planners recently launched Cruise Planners University, which provides extensive audio and written materials on a multitude of travel industry related topics, on both introductory and advanced levels. The topics include liability, client disclosures, marketing, personnel, business management, and tax issues. All of the travel insurance carriers provide information and assistance to home-based agents with regard to the sale of their products. In our experience, the ability of an at home agent to contact a travel insurance carrier is beneficial to both parties and eliminates potential liability issues if the advice is sought and followed. Information with regard to errors and omissions insurance is also available from the insurance carriers for agents interested in that coverage. We believe that most travel industry lawyers recommend errors and omissions insurance for every host agency and home-based agent. Many AAA clubs offer significant support networks for independent contractors, including agents at home, through ongoing educational programs and the extensive use of references available on proprietary websites. There are form books available, written by travel industry attorneys, including substantial information for home-based agents. Longtime travel industry attorney Al Anolik offers a form book for independent contractors and other resources through his San Francisco-based law firm and his website, www.travellaw.com. We also have a form book and other resources available through our website, Jmillerlaw.com. Houston-based travel industry attorney Rose Hache is widely considered an expert in issues relating to travel industry licensing and registration matters. Again, it is interesting to note that there are many available resources available today through various segments of the travel industry, all geared to educating and assisting home-based agents. Obviously, travel industry suppliers have finally recognized the value of home-based agents and their continually expanding role in the industry. Clearly, at-home agents have access to many valuable educational resources, many of which are available at no cost. Most travel industry suppliers also have proprietary websites directed to travel agents, including home-based agents that offer marketing and sales for their specific products and services. We recommend that agents at home utilize these various services to enhance their knowledge and professionalism to ultimately lead to more success and profit.
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