Disney Destinations is amending its 2025 Travel Agency Designation Agreements to reduce minimum insurance requirements.
In an email sent to travel agencies Wednesday, Disney said it would issue new contracts in the coming days. The new contracts will reduce minimums for commercial general liability and privacy insurance. They will also address waivers of subrogation endorsement and the requirement that Disney and its affiliates are listed as additional insureds, Disney said.
In the email, Disney thanked its EarMarked agencies for collaborating with the company and sharing their feedback.
The EarMarked program recognizes Disney's top-performing agencies with support, training and educational opportunities, and grants them the designation of Authorized Disney Vacation Planner.
Earlier this week, ASTA issued a statement encouraging Disney to revisit the terms of its agreement with agencies, specifically the insurance requirements. ASTA said higher insurance minimums were particularly burdensome to smaller agencies.
"As partners in your mission to create magic, ASTA respectfully calls on Disney to revert to the 2024 insurance requirements which, in our view, better reflect the true level of business risk to be managed in light of the diverse needs and capabilities of its valued travel agency partners," ASTA said.
ASTA senior vice president and general counsel Peter Lobasso said the agreements Disney had previously issued "hit a nerve with many of our advisors who specialize in Disney."
"We've been trying to be more responsive to the concerns that are raised by our members that don't really fit neatly into our advocacy work," he said.
Disney Destinations is a member of ASTA, Lobasso said, but he stressed that the company had not done anything in violation of ASTA's Code of Ethics. Lobasso also said ASTA had not seen any of the contracts, which are subject to confidentiality requirements. Instead, ASTA based its response off member feedback.
Responding to Disney's decision to rescind the stricter insurance requirements, ASTA CEO Zane Kerby said, "We appreciate Disney's swift action on this matter, and for recognizing the need to accommodate one of their most essential sales channels, the travel advisors who bring Disney's magic to life."