DO CONSUMERS NEED TO BUY SUPPLIER DEFAULT COVERAGE?
Not if they pay for the travel arrangements by credit card. That is the best (and least expensive) protection against failure of an airline, tour operator or other supplier. In event of bankruptcy, one will not have to pay the credit card bill. In California and in a few provinces of Canada (BC, ON, PQ), compensation funds are maintained for the protection of consumers. Some insurance vendors advertise that their cancellation insurance includes coverage for supplier default but restrictions in the scope of coverage make it of limited value and it is more expensive than what is available through Tourist Insurance Services.
