Check travel insurance for operator collapse

By Tom Farley, Wed 17 Sep 2008 - Published in Travel Insurance

Holidaymakers should check their travel insurance cover for events such as the folding of travel companies, experts have suggested.

Following on from the recent collapse of XL Leisure Group, comparethemarket.com warns travellers that not all insurance providers offer cover for events such as being stranded at an airport.

Jeremy Moll, insurance expert from the price comparison website, advised people to carefully check their travel insurance policy to ensure it covers extenuating circumstances.

In addition, she recommended people with any doubts about their airline or holiday company shop around for travel insurance which will cover them in every eventuality.

Ms Moll commented: "These days, travellers are likely to make their own arrangements for their holiday, as opposed to booking through a travel agent or tour operator. If this is you, it might leave you in a more vulnerable position should something go wrong."

The expert also pointed out that travellers who book through tour operators may be able to make a claim through ATOL, although flights which are booked separately will not be covered by this scheme.

On Friday (September 12th), XL Leisure, the UK's third largest package holiday group, left thousands of people stranded overseas after going into administration.

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