Travel bonding
Obtaining a bond to meet the requirements of ATOL, IATA or ABTA can seem stressful but it needn’t be. We work with a number of approved insurers to offer bonding at competitive rates and with our vast experience of the travel sector and the insurance market, we can make the process as smooth and as efficient as possible.
What is a bond?
A bond is a financial guarantee from a bank or an insurance company that promises to pay a specified sum of money in the event that a travel business ceases trading. Normally, if you obtain a bond from your bank, they will ask you to deposit the relevant sum of money in an account but insurers can provide bonds in return for a premium, which is assessed according to the risk.
How does it work?
We will ask you to complete an application form in order to provide some general information about your business and your bonding requirements. We will also ask for some financial information to enable the insurers to conduct their risk assessment. We aim to obtain you the best possible terms so the more financial information you can provide including management accounts and financial projections, the better. If you have any concerns about this, we are always happy to discuss this in advance of an application.
Once we have everything we need, we will liaise with the insurers on your behalf to obtain bond quotations.
What terms will be offered?
If a quotation is offered, terms and conditions will vary depending on your business, the risk, and the level of bond required.
The insurer may offer terms simply in return for a premium and standard legal documentation. However, in some cases, where the insurer perceives the risk to be higher, they may seek additional security in the form of a guarantee or cash collateral. If this is the case, we will always endeavour to negotiate the best possible terms for you and your business
