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Supplier failure holiday protection

Booking your holiday independently can often give you more choice and flexibility than a traditional package holiday. But if the airline, hotel or rental car company you’ve booked goes bust, you might not be financially protected. Here’s why you may want to ensure that end supplier failure is included in your travel insurance policy.

Booking your holiday independently can often give you more choice and flexibility than a traditional package holiday. But if the airline, hotel or rental car company you’ve booked goes bust, you might not be financially protected. Here’s why you may want to ensure that end supplier failure is included in your travel insurance policy.

Patrick Ikhena
From the Travel team
2
minute read
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Posted 28 FEBRUARY 2020

Why would I need supplier failure cover?

If you book your flights, accommodation and extras like car hire separately, you may not have the same financial protection as you would with a full package holiday.  
 
Package holidays booked through a tour operator or travel agent should be covered by the Air Travel Organisers Licensing (ATOL) or Association of British Travel Agents (ABTA) schemes. This means you won’t be stranded abroad, and you’ll 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 that only specific parts of the trip might be 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 would receive a pay out if the hotel operator went out of business.  

Supplier failure holiday protection can be bought as an add-on to your standard travel insurance, or as a standalone policy. 

CORONAVIRUS UPDATE

Starting on 5 November, the Government has introduced a national lockdown for England that will last until at least 2 December. As part of this, the Foreign, Commonwealth and Development Office (FCDO) advise against all non-essential domestic and international travel.

If you choose to travel overseas to a destination while the FCDO has advised against non-essential travel, or domestically against the instructions of the UK Government, then your insurance policy will be invalid, and any claim will be rejected.

For those living in the UK but outside of England, the public health rules may differ, but you must abide by the restrictions imposed by your local authority.

We’ll continually review the situation, and update you with the latest FCDO or Government guidance on travel.

For more information, please see our coronavirus and travel insurance page.

Until then, stay safe.

Customers with more serious pre-existing medical conditions

When you declare medical conditions on our website, we will only show quotes from insurance providers who will cover for all declared medical conditions, with no exclusions.

The Money and Pension Service (MaPs) has also 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?

Most standard travel insurance policies won’t offer you supplier failure protection. Some insurance providers do include it in their more expensive packages.   
 
Supplier failure protection offers 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. Read the terms and conditions, as some airlines might not be covered.  
  • Other policies offer end supplier failure. This also covers the failure of other elements of your holiday, such as accommodation, car hire, rail and coach journeys.   

You should also check if any elements of your holiday come under ABTA or ATOL protection
  
Another thing you can do to help protect yourself, is pay for all or part of your holiday using a credit card. That way you’ll be protected under section 75 of the Consumer Credit Act, and you could get your money back if one of the holiday suppliers goes bust. 
 
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. Each quote will give you details about key features, so you can find out quickly 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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