Frequent travelers often have an annual travel insurance policy, while others rely on buying travel insurance for each holiday or business trip. Very few policies cover travelers for the dire consequences of what happens when an airline or tour operator goes bankrupt. The recent financial problems of airlines like Zoom and a huge travel company like XL (third largest in Britain) shows that the credit crunch is hitting the travel industry, and is only likely to get worse.
The travel insurance specialist Insurefor.com has therefore come up with a travel policy which specifically protects travelers against financial loss from travel companies and airlines going bankrupt. They say that as far as they know, the policy is unique. It costs only £4 for a single trip or £8 for an annual policy, and offers compensation of up to £5,000.
The £5,000 protection covers the cost of booking new flights, regardless of the cost of the original flight. Even if the original flight was a free flight or a cheap flight booked through an offer on a budget airline, the new Supplier Failure policy will reimburse travelers for whatever it costs to fly home again.