Flight insurance

In recent years, we've seen several airlines cease trading due to economic uncertainty. The collapse of Monarch in 2017 alone left over 100,000 British travellers stranded overseas…

While it’s rare for a travel insurer to pay out in these circumstances, there are some things to look out for. Check whether your policy includes Scheduled Airline Failure Insurance (SAFI) or End Supplier Failure; if it’s not included as standard, it’s possible to take out a stand-alone policy. Usually, this is considered specialist cover.

If you booked your flights as part of an ATOL-protected package, you are more likely to have protection. In this case, you should contact your travel agent or operator. They will either make alternative travel plans for you or offer a full refund.

Some flight-only bookings made through a travel agent are also covered by ATOL (for example, a flight where you do not receive your ticket immediately). If that’s the case, you’ll receive an ATOL certificate, which means you can claim a full refund.

Where you can’t book an ATOL-protected package or flight, there are still a few precautions you can take.

As a general rule, you should always pay for your holiday or flight using a credit card. Booking on a credit card will give you protection under Section 75 of the Consumer Credit Act, provided you spend between £100 and £30,000. If your airline collapsed, you'd be able to claim back what you paid for your flights from the credit card supplier, who is jointly liable with the airline to make sure you get what you paid for.

It’s also worth doing a little research in advance. A quick internet search could reveal if a company is struggling financially. In this instance, a cheap fare might not be worth the risk.

Of course, if you're flying with a large, well-established airline such as British Airways, then the risk is obviously far less than if you're flying with a smaller, less popular airline – but you should always check – it only takes a few minutes.