End supplier failure holiday protection

Booking your holiday independently can give you more choice and flexibility than a traditional package holiday. However, it could leave you vulnerable if the airline, hotel or rental car company you’ve booked with goes bust. 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. However, it could leave you vulnerable if the airline, hotel or rental car company you’ve booked with goes bust. Here’s why you may want to make sure end supplier failure is included in your travel insurance policy.

Written by
Rebecca Goodman
Insurance expert
Last Updated
27 APRIL 2023
5 min read
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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 suffered from financial failure or insolvency.

Does my standard travel insurance include end supplier failure?

Some travel insurance policies will include end 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 to £2,500 per person.

Ask your insurance provider or check the policy wording for full details. While it’s not essential, it can offer peace of mind if a supplier goes bust.

Why would I need end supplier failure travel insurance?

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.

End supplier failure cover can provide financial protection for a holiday cancellation, if 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.

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.

What does travel insurance with end supplier failure 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 airline failure protection 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.

Customers with pre-existing medical conditions

If you have a serious health condition, your travel insurance is likely to be more expensive. Whatever happens, don’t lie to an insurance provider, because this could mean your claim is rejected. When you declare any medical conditions on our website, we’ll only show you quotes from insurance providers who will cover them, with no exclusions.

If your condition is more serious, MoneyHelper has a directory of insurance providers who may be able to provide quotes over the phone. You can call them on 0800 138 7777.

Does paying for a holiday with credit or debit card impact my end supplier protection? 

Yes, when booking a holiday, you should pay for it with either a Visa or MasterCard debit card, or a credit card. If the holiday costs more than £100, and less than £30,000, then you may receive protection under section 75 of the Consumer Credit Act when booked with a credit card. With a debit card, you should be able to charge back the transaction, if the tour operator goes bust.

Paying with a credit card adds a little extra protection if things go wrong. Just remember to pay off the balance every month, otherwise you could be charged interest by the card provider.

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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Frequently asked questions

What is ATOL protection?

ATOL protection is a government-backed scheme designed to protect you if your travel operator goes bust. If this happens, you’ll get your money back. 

ATOL protection applies to holidays booked with an ATOL holder. This most commonly applies to travel agents, who book both the flight and accommodation as part of a package holiday. If you’re booking a flight and accommodation separately, you won’t receive ATOL protection.

ATOL protection isn’t something you add on to your booking or travel insurance, it’s automatically applied to package holiday bookings made with an ATOL holder.

What is scheduled airline failure?

Scheduled airline failure is when the airline you’ve booked with goes bust, either before or during your holiday. This could either put your travel arrangements at risk, or severely disrupt a trip you’ve already started, causing you stress at what should be a relaxing or exciting time.

Scheduled airline failure insurance is designed to protect you from airline failure. If your airline goes bust before you fly, you can claim for a full refund. If you’re already travelling, it could cover the cost of alternative flights to get you home.

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