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If your travel or accommodation provider goes bust

Our travel insurance can provide protection


Financial failure protection

It’s one of oure worste nightmares: the travel company or hotel going bust either before they start their trip or while they’re on it.

If you take the Enhanced level of cover on our travel insurance, you will be covered (up to the limit shown on the Summary of Cover – click here to see the policy wording) for:

  • Irrecoverable sums paid in advance in the event of insolvency of the Travel or Accommodation provider not forming part of an inclusive holiday prior to departure;
  • In the event of insolvency after departure:
    (a) additional pro rata costs incurred by you in replacing that part of the travel arrangements to a similar standard to that originally booked;
    (b) if curtailment of the trip is unavoidable – the cost of return transportation to your home to a similar standard to that originally booked.

However, the policy will not pay for:

  • Travel or Accommodation not booked prior to departure
  • Any loss for which a third party is liable or which can be recovered by other legal means
  • The Financial Failure of:

    (a) any Travel or Accommodation provider in Chapter 11 or any threat of insolvency being known at the date the policy is issued or date the booking is made (whichever is the later)
    (b) any Travel or Accommodation provider who is bonded or insured elsewhere (even if the bond is insufficient to meet the claim)
    (c) any travel agent, tour organiser, booking agent or consolidator with whom you have booked travel or accommodation

Note: This section provides cover for the insolvency of any travel arrangements booked before departure, which do not form part of an inclusive holiday or are bonded or insured already.

These would include: Scheduled Airlines / Hotels / Car ferries / Villas abroad & cottages in the UK / Railway journeys including the Eurostar / Coach journeys / Cruises not bonded / Car hire / Caravan sites / Campsites / Mobile homes / Camper rental / Safaris / Excursions / Eurotunnel / Theme parks such as Disneyland Paris.

Please refer to the Financial Failure Protection section of our policy wording for full details.