Travel insurance with insolvency cover can help plug gap in financial protection for your holiday.

Last week Twickenham based Geo-Dive collapsed; becoming the 6th tour operator in a month to go bust, and the 19th this year. This is a stark illustration that the travel industry is suffering some of the worst trading conditions for 30 years. As holiday makers tighten their belts in the face of rising inflation there are fears of further failures in the coming months.

Under the current ATOL (air travel operator's license) regulations, your holiday is only financially protected if it is bought as a traditional package. If you book elements of your holiday separately they will not be protected under the ATOL scheme.

Booking your holiday independently gives you the freedom to choose exactly what you want to do, when you want to do it and it can save you money. The downside is that you don't get the same level of financial protection as when you book a traditional package.

Although the Government has plans to extend that ATOL protection scheme to include holiday components bought separately, such as hotels and flights, this now doesn't look likely to come in to force until April 2012.

In the meantime, if you do book elements of your holiday separately, travel insurance with Scheduled Airline Failure (insolvency cover) can help plug the gap in the financial protection available for your holiday.

Scheduled Airline Failure Cover provides cover for irrecoverable sums lost as a result of the insolvency or financial failure of a travel or accommodation supplier, with whom you had made a booking and paid in advance, for elements of your holiday which don't form part of a bonded holiday package.

Despite the name, Scheduled airline failure provides cover for much more than just the insolvency of an airline, it provides cover for the insolvency or financial failure of:

Scheduled airlines, Hotels, Car ferries, Villa's abroad & cottages in the UK, Railway journeys, Coach journeys, Cruises not bonded, Car hire, Caravan sites / campsites / mobile homes, Camper rental, Safaris, Excursions, Theme parks.

The good news is Scheduled Airline Failure Cover is included as standard on all policies from insurewithease.com

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