$5M Professional Liability (E&O) Insurance for Corporate Travel Management Companies

For corporate travel management companies with a global client asking for $5M, Professional Liability (E&O) is often one primary policy or a primary plus excess layers.

What does a $5M requirement mean for corporate travel management companies?

Professional Liability (E&O) covers claims that a mistake in your services cost a client money. E&O means Errors and Omissions. A $5M clause may read like this:

• Per claim and aggregate: $5M for one claim and $5M for all claims in the policy year (the aggregate).
• Claims-made: Professional Liability almost always covers claims made and reported while the policy is active, for work after the retroactive date (the earliest work date covered).
• Three years after: you would keep every layer in force for three years after the account ends, or buy tail coverage (extra time to report claims).

Who asks corporate travel management companies for $5M?

Many travel agreements ask for $1M or $2M, and some ask for $3M. $5M tends to show up when:

• A large multinational puts travel in many countries with one travel management company through an RFP (request for proposal).
• A global procurement team uses one master services agreement (a standard vendor contract) with a single high limit.
• Large banks and drug makers may set strict duty of care rules (the employer's duty to keep staff safe on the road) for travel vendors.
• Energy and engineering firms sending crews to remote regions.

How is $5M built?

A primary policy pays first. An excess policy pays only after the layer below it is used up. "$3M xs $2M" means a $3M layer that sits above the first $2M.

Each excess layer should follow form, meaning it adopts the primary policy's terms, and every layer should share the same retroactive date and policy period. If the clause is silent on stacking, confirm with the client that primary plus excess meets it.

Compared with $3M, $5M often means at least one excess layer and extra carrier review. See $3M for travel management companies. A commercial umbrella almost never covers Professional Liability.

If you carry a lower limit today, request new quotes through Morrow for a $5M primary or a new primary plus excess, keeping your retroactive date where the market allows. Report known incidents to your current carrier before you switch.

What will underwriters ask for?

Travel management companies usually buy a form written for travel agents or travel services (often called travel agents E&O), not a general consulting form. Your services and contract decide the right fit. Underwriters may review:

• Fee revenue, booking volume and the share from the requesting account.
• Services such as traveler tracking, visa advice, events and spend reporting.
• Countries served and how you oversee partner agencies.
• How you load and audit negotiated fares, and handle unused ticket credits.
• The agreement, including savings promises, indemnity (a promise to pay a client's losses) and any limitation of liability clause (a cap on what you owe).
• Loss runs (a report of past claims) and your current policy with its retroactive date.

Crisis and evacuation services may be excluded or limited. Check the wording.

What affects the cost?

• Program size. Large global programs usually cost more.
• Higher-risk services. Duty of care, visa advice and events usually add risk.
• How the layers are stacked. The primary layer usually costs the most per $1M of limit.
• Claims history and controls. Past claims and weak fare audits can raise cost.
• Retention and defense terms. Retention works like a deductible. A higher one usually lowers premium.

Frequently asked questions

Do I need $5M Professional Liability as a corporate travel management company?

You need it if your client agreement requires it. $5M often points to a large global account. Illustrative example only: a client claims lost savings after a negotiated airline fare was not applied across a multi-country program for a year.

Can a mid-sized travel management company get $5M?

It may be possible, depending on underwriting, but $5M is a large limit and often needs a broker. Morrow can help you find it. Morrow can review your requirement and request quotes.

Is $3M enough if my contract says $5M?

Usually not. If the contract says $5M, the total across all layers generally needs to reach $5M, so $3M alone may fall short. Check how the clause counts excess layers, and send it to Morrow to review.

How long does it take to put $5M in place?

Timing varies, and a layered program can take longer than one policy because more than one carrier may review your file. Sending the contract requirement and your current policy early helps. Clients usually cannot be added as an additional insured (a named extra party on your policy) on Professional Liability, so a client may accept a certificate of insurance (a one-page proof of your coverage) that lists every layer, if the contract allows it.

This article is general information, not legal advice or a coverage determination. Coverage depends on the actual policy wording, carrier underwriting and your contract terms.