Tommy Lloyd
Author: Tommy Lloyd, Managing Director

Tommy has over 15 years experience within the insurance industry, and his primary focus is helping travellers find the right cover for their medical conditions.

Originally posted: 29th Jun 2023

What is end supplier failure?

When it comes to travel insurance, it's worth noting that end supplier failure is a component that may be included in certain policies to provide comprehensive coverage.

An 'end supplier' can encompass various entities such as airlines, hotels, or car rental companies. In the unfortunate event that one of these parties goes out of business after you've already made payment for their services, it may be possible for you to make a claim specifically for end supplier failure. This additional layer of protection ensures peace of mind and safeguards your travel investment.

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Do I need to have end supplier failure included in my insurance policy?

It’s not essential, but it’s definitely a good thing to have. In today's unpredictable landscape, companies of all sizes can face challenging times. This includes not only large airlines but also small independent tour operators, which are equally susceptible to financial difficulties.

To give you a glimpse of the magnitude, let's take a look at 2019 alone. During that year, a staggering 23 global airlines went bankrupt, making it the worst year on record for aviation bankruptcies. This highlights the importance of being prepared for unforeseen circumstances.

Now, when it comes to deciding whether or not to opt for end supplier failure cover, several factors come into play. It depends on the type of holiday you have booked, the company you've booked it with, and the diversity of end suppliers you'll be relying on throughout your trip. Considering these elements will help you make an informed decision and ensure peace of mind during your travels.

Will my travel insurance policy cover financial failure as standard?

When it comes to travel insurance policies, it's important to note that the majority of them do not include end supplier failure coverage as a standard feature. Therefore, it is crucial to keep an eye out for this specific coverage when you're shopping around for travel insurance. If ensuring coverage for such situations is something you're after, you'll need to be proactive in your search.

Depending on your specific needs, you can find policies that offer "Scheduled Airline Failure" coverage, which exclusively covers airline failures. On the other hand, there are policies that provide "End Supplier Failure" coverage, which can protect you against a multitude of unforeseen circumstances. It's worth exploring the details of these policies to understand the extent of coverage they offer and how they can safeguard your travel plans.

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Am I covered for financial failure if I’ve booked a package holiday?

If've booked a package holiday with a number of different services included, such as flights and accommodation, there is a higher risk of potential failure when more companies are attached to the package. However, you can find reassurance in the fact that you might already be protected by reputable organisations like the Civil Aviation Authority (CAA) or the Association of British Travel Agents (ABTA).

The CAA, for instance, ensures that all travel companies selling flights and accommodation hold an Air Travel Organisers' Licence (ATOL). This licence provides financial protection to travellers in case a travel company goes out of business, ensuring that you won't lose your money or be left stranded abroad.

Therefore, it is crucial to double-check and ensure that these protective measures are in place before you make the final decision to book your package holiday. Taking this extra step will give you peace of mind and ensure that your holiday is protected from any unexpected circumstances.

Am I covered for financial failure if I’ve booked through a tour operator?

Similarly, when you choose to book your holiday through a reputable tour operator, you can rest assured that the responsibility for any unforeseen issues rests on their capable shoulders.

For instance, let's say the tour operator has not only purchased and booked flights on your behalf but also arranged accommodation and other services. In the unfortunate event that the airline in question ceases trading, the tour operator is obligated to swiftly make alternative arrangements or provide you with a full refund.

This commitment aligns perfectly with the regulations set forth by the CAA, ensuring your peace of mind throughout your travel experience.

Am I covered for financial failure if I’ve booked my flights and accommodation separately?

In these unfortunate circumstances, it is important to note that CAA regulation may not apply. However, if you have a travel insurance policy that specifically covers you for scheduled airline failure or end supplier failure, you should be able to make a claim in the event that your airline goes bankrupt.

Moreover, it's worth mentioning that in certain instances, you may even be able to recoup the funds before making a claim to your travel insurance provider. This can provide a quicker resolution to the situation at hand.

Additionally, if you made the flight bookings using a credit card, debit card, or PayPal, there is a high likelihood that you can directly claim the funds back by contacting your card provider or bank. Taking this route can offer a straightforward and efficient method of recovering your money.

It is always advisable to carefully review your travel insurance policy and understand your rights and coverage when it comes to unforeseen circumstances like airline bankruptcy. Being well-informed and prepared can make a significant difference in navigating such situations.

Are you ATOL/ABTA protected?
I booked a package holiday Probably
I booked through a tour operator Probably
I booked my flights and accommodation separately Probably not

What is ATOL protection?

As we’ve mentioned, ATOL stands for Air Travel Organisers’ License, which is a financial protection scheme covering most air package holidays and some flight-only bookings.

If you book your holiday with an ATOL-protected provider then you will be covered if that company ceases trading post-purchase.

You will also be entitled to a refund for the money you paid for the holiday and if you’ve already arrived at your destination as the company enters administration, you’ll still be covered for your journey home and won’t be left stranded.

Ensuring you’re covered

Nowadays, it’s probably fair to say that most people go down the route of booking flights and accommodation separately online, as opposed to buying a package from a travel company or booking through a tour operator. 

For that reason, it’s always worth considering financial failure inclusion for travel insurance - but which type do you need?

  • Travel insurance policies with “end supplier failure” included

    If a policy includes end supplier failure, then this will protect you in the event of travel and accommodation losses should the respective companies go into administration.

    Should this be the case in either scenario, you will be able to claim back the cost of purchasing alternative flights, or accommodation.
  • Travel insurance policies with “scheduled airline failure” included

    Scheduled airline failure exclusively covers the costs if your chosen airline goes into administration.

    However, if you find a policy that includes scheduled airline failure - be sure to carefully check the policy wording, as this may not extend to all airlines, only some. 

With us, you can compare cover across a range of leading travel insurance providers to find a suitable policy. This means you can directly compare what different providers are offering quickly and easily - all in one place. 

Not only can you compare specialist cover for pre-existing medical conditions, but you can also compare what each provider can offer on a policy-by-policy basis.

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A pre-existing is any medical condition for which medical advice, diagnosis, care, or treatment was recommended or received before applying for a travel insurance policy. For some conditions, we'll need to know if they have ever been present, whilst for others if they occurred within a certain period.

Single Trip insurance is for one-off, individual trips and will cover your specified travel dates. This is usually up to 45 days; however, some insurance providers can cover up to 94 days. If you’re not a frequent traveller, single trip cover is a great option and will likely be cheaper than an annual multi-trip cover.

If you travel 2 or more times a year, annual trip cover may very well save you money. The maximum duration of any trip will always be specified and will vary by provider. But don't worry, when you get a quote, we'll ask you what your maximum trip length is and only show you quotes that match!

You can visit our help centre on Claims which may help. However, if you need to make a claim, full details of what you need to do to make a claim will be detailed in the Policy Wording provided to you by your insurance provider. 

If you are taking out single trip cover, and have cancellation cover included, you'll be covered for cancellation from the moment you buy your policy. However, if you are taking out annual trip cover, and have cancellation cover included, you'll be covered from the start date of your policy. Consider starting your annual trip cover as soon as possible, especially if you have already booked your trip!
Annual and Single policies can be arranged for individuals, couples, families and groups. An individual policy provides cover for one person only. A couple is two individuals living at the same address. A family is either one or two parents travelling with their child or up to 10 children (under 18 years) for whom they are legal guardians and who all reside together.  A group is 2 or more people travelling together, regardless of their relationship, up to a maximum of 12. Check with your insurance provider whether everyone insured on an Annual policy must live at the same address.
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