Airline failure cover 'missing from some travel insurance'

By Tom Farley, Thu 25 Sep 2008 - Published in Travel Insurance

Holidaymakers should take care when purchasing travel insurance as only a limited number of providers offer cover against scheduled airline failure as standard, it has been suggested.

Price comparison website moneysupermarket.com claimed that as few as four insurance providers protect their customers against the flight failure, which occurred in recent weeks when companies such as Zoom and XL collapsed.

However, the organisation pointed out several firms do offer the protection as an add-on policy and warned holidaymakers not run the risk of being caught short.

Peter Gerrard, head of insurance research at the website, commented: "It's surprising to see there are only a handful of insurers at the moment offering cover for scheduled airline failure as standard; don't assume you will always be covered - it's important to read the small print of your policy."

However, Mr Garrard also claimed as the importance of the cover becomes apparent more providers could start to make it an option for their customers.

Recently, American Express advised customers not to cut out travel insurance to save costs, pointing out the risk being left with large repatriation and medical fees.

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