Supplier failure holiday protection

Booking your holiday independently can give you more choice and flexibility than a traditional package holiday. But if the airline, hotel or rental car company you’ve booked with goes bust, you might not be protected. Here’s why you may want to make sure End Supplier Failure is included in your travel insurance policy.

Booking your holiday independently can give you more choice and flexibility than a traditional package holiday. But if the airline, hotel or rental car company you’ve booked with goes bust, you might not be protected. Here’s why you may want to make sure End Supplier Failure is included in your travel insurance policy.

Josh Daniels
From the Travel team
4
minute read
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Posted 14 DECEMBER 2020

What is End Supplier Failure?

End Supplier Failure is an insurance term that refers to the possibility of your tour operator, airline or hotel going out of business. If you have supplier failure cover, it would give you protection if one of these companies went out of business.

The travel and hospitality industries have suffered financially in recent months as a result of coronavirus, so this scenario is more of an issue than it might once have been.

Why would I need supplier failure cover?

If you book your flights, accommodation and car hire separately, you may not have the same financial protection you would with a package holiday.

Package holidays booked through a tour operator or travel agent should be covered by Air Travel Organisers’ Licensing (ATOL) or Association of British Travel Agents (ABTA) schemes. This means you won’t be stranded abroad, and you should get your money back if the airline or supplier goes bust.

However, independent travellers who book different elements of their trip separately, are unlikely to be protected by ATOL or ABTA. Or it’s possible only specific parts of the trip are protected.

Supplier failure cover can provide financial protection if your holiday is disrupted because something has gone wrong with the ‘end supplier’ – for example, the hotel. In this scenario, you’d receive a pay-out if the hotel operator went out of business either before or during your trip.

Some policies include some cover for End Supplier Failure as standard. Others will allow you to buy supplier failure holiday protection as an add-on to your travel insurance policy, or as a standalone policy.

CORONAVIRUS UPDATE

Following the UK’s most recent national restrictions, you can only travel internationally or within the UK if you're legally permitted to do so while the UK is under full lockdown restrictions.

Non-essential travel is not currently permitted within the UK before 12 April 2021 at the earliest and international travel is not currently permitted before 17 May 2021 at the earliest. Any insurance for travel before these dates is likely to be invalid. The Foreign, Commonwealth & Development Office (FCDO), currently advises British nationals against all but essential international travel. See latest FCDO advice for further information.

Any insurance policy purchased to cover a trip to a destination where the local authority, or the FCDO, has instructed citizens not to travel, will not be valid.

For more information, please coronavirus and travel insurance page.

Until then, stay safe.

Customers with more serious pre-existing medical conditions

Our panel includes insurance providers who quote cover for all medical conditions declared on our website, with no exclusions.

On its Money Advice Service website, The Money and Pensions Service (MaPs) has launched a directory of insurance providers who may be able to provide quotes over the phone, if you have more serious medical conditions. Find more information at the Money Advice Service or by calling the British Insurance Brokers’ Association on 0370 950 1790.

Does my standard travel insurance include end supplier failure?

Some travel insurance policies will include supplier failure protection as standard, often in their higher-rated products, but many don’t.

Supplier failure protection can offer additional cover for elements of your holiday that were booked separately. Typically, cover ranges from £1,000-£2,500 per person.  

What does End Supplier Failure travel insurance cover? 

End supplier failure travel cover can vary depending on insurance providers.

  • Some policies offer scheduled airline failure insurance (SAFI). This only applies to airline bookings, not other parts of your holiday. It’s important that you read the terms and conditions to understand the specifics of what this will cover you for.
  • Other policies offer end supplier failure covering other parts of your holiday - accommodation, car hire, rail and coach journeys, for example.

You should also check if any parts of your holiday come under ABTA or ATOL protection.

As with all insurance policies, read the terms and conditions of any extra add-ons carefully, so you know exactly what’s covered.

How can I compare travel insurance deals? 

Use our handy comparison tool to compare travel insurance deals in a matter of minutes. Selecting ‘more details’ next to each quote in your comparison results will show you more information about the key features of each deal, so you can quickly see if supplier failure protection is included.

Compare travel insurance with us and see if you can save on your next trip.

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