Financial Failure Insurance

 

If you sell non-flight packages, Financial Failure Insurance offers a cost-effective alternative to complying with your insolvency protection obligations under The Package Travel Regulations (PTRs) or as an alternative to bonding for your ABTA Membership.

How does it work?

Financial Failure Insurance (FFI) is a policy that you put in place to protect your customers in the unlikely event that you cease trading. We work with approved insurers to offer a more flexible approach to insolvency protection at competitive rates. There are no restrictions on your cash, business systems or which suppliers you can use, giving you the flexibility to run your business as you wish, without constraint.

There are no complicated administrative procedures and you simply report new bookings taken on a monthly basis.

FFI can act as a stand-alone policy to comply with PTR requirements or it can support your ABTA membership instead of a bond. It can also help you secure a better deal for your merchant facilities by reducing your merchant acquirer’s exposure.

How do I apply?

To obtain a quotation, we will ask you to complete an application form to provide some general information about your business, as well as financial information including management accounts and projections to enable the insurers to conduct their assessment.

Once we have everything we need, we will liaise with the insurers on your behalf to obtain quotations.

There is no application fee and in most cases, we are able to turn around applications in 10 – 14 days.

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 cover required.

The terms will include a requirement to pay an upfront premium based on your projected revenue, which will act as a credit on your account. Each month, you will be asked to declare bookings taken and premiums will be calculated and debited from your account. If the credit is used up, you will be invoiced for any additional premiums.

If you are happy with the terms, FFI policies can be put in place quickly to provide cover within a matter of days.

Get in touch for more information.