Compare Travel InsuranceTravel Insurance TipsDoes travel insurance cover insolvency?

Does travel insurance cover insolvency?

If you think travel insurance covers insolvency you’re not alone. Most travellers expect their insurance to cover airfares, tour bookings and accommodation if a company collapses – but unfortunately, and to quote the Rolling Stones… you can’t always get what you want.

Most standard policies do not provide protection for insolvency, collapse or default of airlines, travel agents, wholesalers, cruise operators, tour operators, hotels, car hire companies, railways or theme parks.

Trying to get your head around what insurers mean when they say ‘they DO cover for insolvency of a travel service provider’, but DO NOT cover for financial collapse of any transport, tour or accommodation provider is tricky to say the least’.

Don’t worry it’s not all bad news – you can get what you need. You just need to know where to look and that’s where we come in. We’ve put together a table explaining who-covers-what below to make it easier to understand. SCROLL FOR MORE INFORMATION.

Who’s at risk?

If you’re a do-it-book-it yourself kind of traveller and buy your flights direct with an airline then you’ll be the most vulnerable when it comes to protection. If you use a travel agent to book your holiday and the airline goes bust, you might be able to get a refund through the agent, or they may be able to help get you home if you’re stranded overseas.

Pay with your credit card

Even if you do tend to book your travel arrangements yourself, a good way to ensure protection is to pay using a credit card. The credit card company might be able to recover your money or you might be able to claim under your credit card insurance. Try not to buy your travel arrangements using a debit card as they don’t provide the same level of protection.

Help is at hand

In some states and territories programs are in place where you may be able to apply for compensation for insolvent companies. Contact the Australian Competition and Consumer Commission for more information.

Who’s covers it?

Gettig in to the nitty gritty – who covers what?

Mouseover the ticks and crosses for more details on each.


Do they offer it?

1Cover Certain underwriters at LLoyd's
1300 Insurance Allianz Australia Insurance Limited
AIG AIG Insurance Limited
Allianz Allianz Australia Insurance Limited
American Express Chubb Insurance Australia Limited
Aussie Travel Cover Allianz Australia Insurance Limited
Australia Post Zurich Australian Insurance Limited
Australia Seniors Chubb Insurance Australia Limited
Boomers Allianz Australia Insurance Limited
BUPA CGU Insurance
Budget Direct Auto and General
Columbus Direct Certain underwriters at LLoyd's
Cover-more Zurich Australian Insurance Limited
Commbank Zurich Australian Insurance Limited
Chubb Insurance Australia Limited Chubb Insurance Australia Limited
Downunder Allianz Australia Insurance Limited
Easy Travel Insurance QBE Insurance Limited
Fast Cover Hollard Insurance Company Pty Ltd
Go Insurance Certain underwriters at LLoyd's
Insure4Less Certain underwriters at LLoyd's
Insure and Go Mitsui Somotomo
itrek Certain underwriters at LLoyd's
Jetstar AIG Insurance Limited
Kango Cover Certain underwriters at LLoyd's
Medibank Zurich Australian Insurance Limited
Multi-Trip Mitsui Somotomo
Nib Certain underwriters at LLoyd's
No Worries Certain underwriters at LLoyd's
NRMA Great Lakes
On Tour AIG Insurance Limited
Online Travel Insurance Allianz Australia Insurance Limited
Priceline Protects Chubb Insurance Australia Limited
Qantas QBE Insurance Limited
QBE QBE Insurance Limited
Real Insurance Hollard Insurance
Simply Travel Insurance Certain underwriters at LLoyd's
Ski Insurance Allianz Australia Insurance Limited
Southern Cross Southern Cross Benefits Limited
STA Travel Allianz Australia Insurance Limited
Sure Save Certain underwriters at LLoyd's
TID Certain underwriters at LLoyd's
Tick travel Mitsui Somotomo
Travel Insurance Saver QBE Insurance Limited
Travel Insuranz Certain underwriters at LLoyd's
Traveller Chubb Insurance Australia Limited
Under 30 Certain underwriters at LLoyd's
Virgin Australia Zurich Australian Insurance Limited
Virgin Money Allianz Australia Insurance Limited
Webjet Allianz Australia Insurance Limited
Westpac Allianz Australia Insurance Limited
Woolworths Hollard Insurance
Worldcare Allianz Australia Insurance Limited
World Nomads Certain underwriters at LLoyd's

Read the small print 

We’ve simplified the insurers' policy wording in the table above, but this doesn’t mean you can get away without reading it. We know it’s not a great read but it’s really important to understand the cover you’re purchasing – so give your insurers PDS a read! If you’re not sure that you understand the conditions you can always call the insurer for advice before buying online.

Compare to find the right cover

Shop around for insurance to make sure you are getting the right cover for your travel needs. You can use to compare over 20 Aussie insurers in seconds. Yippee!


An insolvent company is one that is unable to pay its debts when they are due. The three most common insolvency procedures are voluntary administration, liquidation and receivership.


Need some help? Use the search box below to find answers to all those tricky travel insurance questions. We’ve got heaps of travel insurance tips to help you get the best policy for your upcoming holiday!


Ask Eugene travel insurance geek extraordinaire anything

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