Disruption caused by a provider going out of business

There is no cover under the LV= Travel Insurance policy for costs you lose as a result of the collapse of a company providing your transport or accommodation.

If you've booked through a tour operator your trip costs should be covered through the Air Travel Organiser’s Licensing (ATOL) protection.

If you booked through a travel agent you may also have ATOL protection and should check with the travel agent you booked with.

The Civil Aviation Authority (CAA) is responsible for enforcing the ATOL Regulations that stand behind the ATOL system. ATOL protects you from losing your money or being stranded abroad. It does this by carrying out checks on the tour operators and travel organisers it licenses, and requiring them to take part in a financial guarantee scheme managed by the Air Travel Trust (ATT). This fund then provides the funds to protect customers should a firm fail.

If a tour operator goes out of business, the CAA will ensure you don’t lose the money you paid, or if you're abroad, the CAA will arrange for you to finish your holiday and fly home. 

If a firm advertises flights as an airline ticketing agent, check before paying that you'll get a ticket straight away. 

You can check whether your holiday company is an ATOL member on the CAA website.

If you booked flights directly with an airline

Airlines are not included within the ATOL scheme, so if you booked direct with an airline that has ceased trading you will not be covered. If you paid directly to the airline by credit card you might be protected by Section 75 of the Consumer Credit Act 1974. You should check with your card issuer for further advice. 

If you booked your airline ticket through a travel agent you should speak to the agent.

If you booked through an ATOL holder

If you booked flights together with other holiday arrangements with a travel company that holds an ATOL, and received an invoice for these from this company, it is responsible for arranging alternative flights for you so that your holiday can continue. If you are abroad, it should make arrangements to bring you home at the end of your trip.

If you have bought just flights from an ATOL travel company and it issued your ticket straightaway, the company may provide airline failure insurance, which you could claim from. You should contact the ATOL travel company.

Scheduled airline failure insurance

Some airlines, ATOL holders and travel agents will offer you a specific Scheduled Airline Failure Insurance (SAFI) policy or include similar protection within a broader travel insurance product. The type of protection provided may vary depending on the type of policy taken out. A policy may cover the cost of the original tickets purchased or the additional cost of purchasing new flights, such as when purchasing new tickets for travel back to the UK.

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