Is a seller-of-travel bond or trust account the same as insurance?
No. California describes registration, trust, and bond mechanisms for covered sellers, with requirements that depend on the seller’s circumstances. Those mechanisms are distinct from a commercial insurance policy.
The state says registration is not proof of reputation or state approval, and some but not all sellers must provide a bond or hold customer funds in trust. Check whether statutory exemptions apply to your activities.2,1
Ask the broker separately what the proposed policy insures, what triggers payment, and what customer deposits or supplier failures are excluded. Do not present the bond or trust arrangement as policy coverage.3,2
Read the Travel, Leisure and Tourism Insurance Buying Guide
Sources and Further Reading for Travel, Leisure and Tourism
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