legal questions
Question
How can I limit my liability as a travel agency?
Answer
Running a travel agency or tour operator business carries many risks, especially if you're working with third parties. As such, it's important to consider the ways you can limit your liability for anything that goes wrong.
It's common business practice to insert standard 'limitation of liability' clauses into your contracts with the parties you're working with. This will clearly set out matters that you are not to be held responsible for, or in some cases, it can limit the amount that you are required to pay in the case of any liability (for instance, capping it at a certain amount).
In addition, some businesses can have a liability waiver in their terms and conditions to their customers when they first engage with you. This informs customers that you (the business) will not be liable for certain matters.
For more detailed information on how to properly implement these clauses and ensure they are enforceable under New Zealand law, it's advisable to consult with a legal professional. The New Zealand Law Society provides a directory of lawyers who specialize in commercial law and can offer guidance specific to the travel and tourism industry. Visit their website at New Zealand Law Society for more information.
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