Travel Insurance & Company Bankruptcy

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Travel Insurance Company Bankruptcy

With several travel companies going bust last year, article after article is stressing the importance of getting travel insurance alongside your holiday this year and indeed the writers of the articles are correct to make such a recommendation. Travel insurance is after all there to give you peace of mind. This is even more poignant considering Dream Holidays, a Hertfordshire based company that specialised in trips to Greece, Egypt and Cyprus, announced that it had gone bust this week, leaving 1800 people stuck or affected. Of course, as an ATOL protected company, their customers will be able to get home but many will still be looking into travel insurance policies to see if they are covered.

Most travel insurance policies will help you if the holiday you had booked is cancelled on you and you will not be able to get money back from a bankrupt company but some actually state that they will not reimburse you for such a loss. This is often hidden in the small print and tends to be a feature of the most basic of policies out there. However, it is certainly a feature that you should look into if you want to take out a policy that gives you peace of mind.

You may find, when looking around the travel insurance market, that many companies state in advance if they cover your holiday should the travel company go bust. If they do not but you like the other features on a policy then do what you think is best but always pay for a holiday on a credit card to give you that little extra protection. Credit card companies have to reimburse you if you lose your holiday via company bankruptcy under consumer law so you would always have peace of mind with that to back you up.

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