If I’m an independant contractor, does the agency’s EO insurance cover me?

I am a travel agent, an independent contractor for a large travel agency. I put together a quote for a trip to Europe which the client confirmed they wanted to deposit. They filled out and signed the credit card form for the agency and I signed the credit card for from the tour operator. Immediately following their written consent by email to charge the deposit the trip, the client changed their mind. I immediately within a few hours informed the tour operator to not charge the credit card but they did and they will not return the clients money now saying it is a non refundable deposit. The client is now telling me he will sue both me and the tour operator for the funds. Am I responsible and if so does EO insurance cover me?

Asked on April 24, 2017 under Employment Labor Law, New Jersey

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

1) A business's EO insurance does not cover independent contractors, which are legally their own businesses and which need to maintain their own insurance.
2) You are liable or financially responsible only if they can show you were negligent, or careless, and that negligence contributed to the loss. If you delayed contacting the tour operator, even by a few hours, and that delay is the reason the charge went through, that could make you liable, since it was careless to delay and that delay led or contributed to the loss. However, if you contacted the tour operator as soon as you knew, then you did everything you could, were not negligent or careless, and should not be liable.


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