Sometimes no matter how well you may plan your holiday there’s always a chance that a business you’ve booked with (e.g, airline or a travel agent) goes out of business and the trip is cancelled or interrupted. If you’re worried about this possibility read on to find out what you can do.
Does travel insurance cover losses due to insolvency?
- Our travel insurance plans don’t offer cover for insolvency. That means if your plans are affected by insolvency and you incur some costs, you may not have cover under the policy for this event. This also includes any costs that are caused by liquidation, or any other form of financial failure.
- You should be aware if you book travel with a travel provider that is still running or offering services, even though they’ve declared insolvency, if you end up losing money and your holiday because they’re insolvent, it may affect your claim leaving you out of pocket as there is no cover under our policies for insolvency.
We also won’t cover losses incurred if:
- You’ve been offered alternative arrangements by the travel provider;
- You decline a reasonable alternative service or compensation offered by your carrier or other travel service provider;
- You have concerns about a potential insolvency.
What to do if your travel provider has gone insolvent
If your accommodation provider, carrier or tour operator has gone insolvent you should always reach out to them in the first instance to see if they can offer you some form of compensation. If that is no help you should try:
- Contacting your airline, cruise or tour operator to check if tourist services are affected.
- If you need to change your travel arrangements, contact your airline, cruise company or travel agent for assistance in the first instance. Refer to your policy wording for more details or contact us to discuss your plans before making any changes.
In the event of a claim covered by your policy, you must do everything you can to minimise and reduce the cost of the claim and provide all supporting documentation of the event and expenses incurred. If you intend to submit a claim, please complete the claim form and if you need help doing this, contact us.