After booking your holiday, it is understandable that you would want to safeguard your trip in case of the financial failure of one of the suppliers. This help article explains holiday protection insurance. And there are different types of holiday protection insurance to safeguard your travel plans.
First, you should check the holiday you are booking is fully bonded by one of the two main UK travel bonding schemes: ATOL (Air Travel Organisers Licensing) or ABTA (Association of British Travel Agents).
However, if you book your flights, accommodation and other services separately, such as car hire, you don’t have the same protection as if you had booked a packaged holiday. So you cannot always rely on the ATOL and ABTA schemes. For example, if a travel agent sells you flights from one company and accommodation from another, and then goes into receivership, its ATOL bond will only cover the cost of your flights.
How to protect yourself financially
- Check the holiday you are booking is fully bonded by one of the two main UK travel bonding schemes: ATOL (Air Travel Organisers Licensing) or ABTA (Association of British Travel Agents).
- If you are booking independently, many of our policies do include cover for End Supplier Failure as well as Scheduled Airline Failure Insurance (SAFI). Please note this may be available as an Optional Extra.
- Pay for your holiday using a credit card or Visa Debit card, as this may give you added protection.
What should you do if your insurance provider goes bust?
If you book your holiday separately, how do you protect yourself financially if the airline, tour operator, or travel agent goes bust?
If you book your flights, accommodation and other services separately, such as car hire, you cannot rely on the ATOL and ABTA schemes. For example, if a travel agent sells you flights (or a cruise) from one company and accommodation from another and then goes into receivership, its ATOL bond will only cover the cost of your transport.
If you make individual arrangements, it is crucial to take out a comprehensive travel insurance policy, which includes End Supplier Failure or Scheduled Airline Failure.
What should you do if your holiday provider has gone bust?
Don’t panic. If you have booked a packaged holiday it should be protected via the ATOL bond system. Visit ATOL to find out how to claim a refund.
If you’re currently overseas and need help, contact the Civil Aviation Authority (CAA) on 0044 161 444 5810.
