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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.

Getting 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.

Does travel insurance cover insolvency or bankruptcy of a travel provider or agent?

While there are no travel insurers we know of that cover for insolvency of a travel agent, some travel insurers cover insolvency of transport providers, like airlines or cruise companies. Compare insolvency travel insurance via our table above.

What is a credit card chargeback?

Due to consumer protections associated with credit cards, if your travel provider or agent goes insolvent and fails to deliver services or goods, you can request a chargeback from your bank. They will review your case, and if they find you haven’t gotten what you paid for, they may reverse the transaction. There are often time limits on when you can request them, so give your bank a call to learn more.

What should I do if my travel agent or provider becomes insolvent?

You’ve still got some options. If you’ve booked with a travel agent, they may be able to refund you if your airline or accommodation provider becomes insolvent. Additionally, you may be able to get a chargeback through your bank, or get compensation through a government program. Depending on which travel insurer you’re with, you may also have cancellation benefits for insolvency of a transport provider.

Why don't all travel insurers cover insolvency?

Insurance is a risk-based product, and the financial risk an insurer would be exposed to if a major travel agent became insolvent could be enormous. By limiting their exposure to such risks, they don’t have to include insolvency risks in their premium calculations.