Do any travel insurance brands cover insolvency? While most standard travel cover 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 - but we've found a few that do.
What is insolvency?
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. If your airline, travel agent, or other travel provider becomes insolvent, they can no longer trade - leaving travellers in the lurch!
Most comprehensive travel insurance policies do not cover insolvency of any travel agent or provider, while a few offer cover for collapsed travel providers, like airlines, but not the collapse of travel agents.
| Insurer | Underwriter | Conditions | |
|---|---|---|---|
Zurich Australian Insurance Limited | |||
Certain underwriters at Lloyds | Provides cover of up to $1500 if you must cancel or amend your trip due to the financial default of a travel service provider. Applies to Go Plus policies only | ||
Chase Underwriting | Provides cover up of to $5000 due to the insolvency of a travel carrier with which you are booked to travel. Applies to Deluxe policies only | ||
Tokio Marine & Nichido Fire Insurance Co Ltd |
Cover-More
Go insurance
Travel Insuranz
World2CoverGetting help for Travel insolvency
1. Use reputable companies
If you’re a do-it-book-it yourself kind of traveller who buys your flights direct with an airline you've never heard of, then you may 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.
2. 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 if you request a chargeback, or you might be able to claim under your credit card insurance. Reconsider buying your travel arrangements using a debit card as they don’t provide the same level of protection.
3. Seek compensation through government programs
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.
4. Take a big look at the small print
Our table above can help you find travel insurers who may offer insolvency cover, but this doesn’t mean you can get away without reading their policy. We know it’s not a great read, but it’s really important to understand the cover you’re purchasing. If you’re not sure that you understand the conditions you can always call the insurer for advice before buying.
5. Compare to find the best cover for you
Shop around for insurance to make sure you are getting the right cover for your travel needs. You can use our quote engine to compare the travel insurance of over 20 Aussie insurers in seconds.
insolvency travel insurance faqs
Questions about insolvency travel cover? You've come to the right place.
Crystal Moran
With a research and journalism background, and certified in Tier 2 General Insurance General Advice, Crystal is passionate about investigating customers’ tricky travel questions and helping them find the answers they’re looking for. A writer and filmmaker whose favourite trips have been to film festivals in Cuba and South Korea, and campervanning around the USA, she loves getting to know new people and seeing a glimpse of the world through their eyes.
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