The recent collapse of Turkey specialist Elixir Holidays highlights the importance of making sure your holiday is protected against the risk of insolvency.

We invest a lot of money in our holidays and losing it all, as well as losing the holiday experience we’d dreamed of, if a supplier ceases trading can be devastating.

If you book a package or flight plus holiday (flight plus accommodation or flight plus car hire) from a bonded suppler your holiday will be ATOL protected.  This means that the CAA will look after you if your holiday supplier becomes insolvent, helping you get home if you are abroad or helping you get your money back if you are still at home.  You should get an ATOL certificate when you book your holiday.

Travel insurance cover for financial failure

If your holiday is not ATOL protected, for example you’ve booked your flight and accommodation separately, you should look for another way to protect the money you’ve paid out.  This is where travel insurance can help. 

Not all travel insurance includes insolvency cover, often known as Scheduled Airline or End Supplier Failure, so it is important to check before you buy.

The good news is that Goodtogoinsurance.com includes Scheduled Airline/End Supplier Failure cover on all policies.

With Scheduled Airline/End Supplier Failure, cover is provided in the event that one of your unbonded holiday suppliers, including airlines, hotels, car hire or accommodation suppliers, become insolvent, enabling you to make a claim to recoup the cost.

This means that you will be able to rebook that element of your holiday with an alternative supplier and continue your holiday as planned. If the insolvency occurs whilst you are away and it is not possible to continue with your trip cover is provided for return transport back to the UK.

Find out more about Scheduled Airline/End Supplier Failure.