The UK Insurance Blog

Everybody is talking about the collapse of XL, the latest in a series of casualties of a struggling holiday market. An interesting article by Teresa Hunter in online Telegraph highlights how we can all survive the collapse of a tour operator or travel agent.

With another airline losing the battle to stay afloat, it is becoming more obvious that more and more travel insurance policies are not equipped to protect customers in the event of a collapse of a tour operator or airline.

According to the article, the Association of British Insurers state that many policies will not protect holders in the event of collapse of a tour operator. While there are certain policies that do protect you from the effects of a failing tour operator, the holidaying public needs to be aware which policies will cover them. Policy shopping at the Post Office, AXA Direct and M&S will pay dividends in the unthinkable event of an airline or operator collapse. AXA currently offers cover of £3,000, the Post Office £1,500 and M&S will compensate up to £6,000.

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