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Date: 22/10/2010

Ask if your travel agent or website has ‘Supplier Failure Cover’, says

British holidaymakers should be asking their travel agents whether they have ‘Supplier Failure Cover’ – a new type of insurance policy that protects holiday plans if any supplier fails to provide their service.

With bad weather, terrorist alerts, proposed strikes and other unforeseen events affecting Brits’ travel plans, many travel companies are left exposed and – as a result – are leaving their customers without any financial protection.

Antony Martin, managing director of, said:

“First and foremost, check what your own insurance policy covers in terms of your travel arrangements, and make sure you’re dealing with reputable brands, ideally members of ATOL.  Booking using a credit card also affords you a certain degree of protection. 

“Beyond that, checking if the companies you’re dealing with have supplier failure cover – particularly if you’re creating a ‘DIY’ holiday i.e. booking flights yourself, sourcing your own accommodation, etc . – is a great idea.  If the travel company you’re dealing with has this type of travel insurance cover, it’s going to be a lot easier for you to get full financial protection – and to be able to make alternative arrangements for your trip - if the worst does happen.

“In effect, supplier failure cover should be seen as best practice for travel agents and tour operators –you should check they have adequate financial protection so that your money is protected in the event of a failure”