Am I covered if my tour operator/airline goes bankrupt or becomes insolvent?

You might be ready to take off for your next trip or are midway through your travels when the airline, tour operator or hotel you’ve booked with stops operating for financial reasons and derails your travel plans. If you’re worried about this possibility read on to find out what you can do. 

The first step to take - if your accommodation provider, carrier or tour operator has gone bankrupt – is to reach out to them in the first instance to see if they can offer you some form of compensation.  

Does travel insurance cover losses due to bankruptcy? 

  • Our travel insurance plans don’t offer cover for bankruptcy. That means if your plans are affected by a bankruptcy 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, insolvency 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 a bankruptcy, if you end up losing money and your holiday because they’re bankrupt, it may affect your claim leaving you out of pocket as there is no cover under our policies for bankruptcy.   

We also won’t cover losses you’ve 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 bankruptcy

What to do if your travel provider has gone bankrupt 

  • Contact 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 Document for more details or contact us to discuss your plans before making any changes.  

This is only a summary of coverage and does not include the full terms, conditions, limitations and exclusions of the policy. You should read your Policy Document in full so you understand what is and isn’t covered. That way there won’t be any surprises if you need to use it. If you have any questions, please contact us 


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