Abstract In view of the flourishing travel atmosphere, particularly in Taiwan, the amount of the travel population abroad has reached nearly 8.2 million in 2009. In order to avoid the numerous trivial travel related procedures, most tourists request travel agencies to arrange their itineraries. However, the quality of some travel agencies is suspect, so many news reports, such as owners going out of business, absconding with the money, or the quality of the journey is unsatisfactory, can be occasionally heard. Therefore, how to protect the consumers’ rights has become an important issue in modern society. This article reviews the Travel Agency Performance Bond Insurance from legal aspects and analyzes controversial points of the insurance policy.