What happens if the holiday company goes bust?
Throughout 2008, the threat of airlines and holiday companies going bust became an increasing concern with the likes of XL Leisure, Zoom and Silverjet among the high-profile casualties of the credit crunch. Chances are that you will not be covered under a travel insurance policy if a company were to go bust as standard cancellation cover is not sufficient. Instead you need an option within a policy called standard airline failure (SAF) only around 10 per cent of travel insurers include it in their policies though some do offer it for an additional charge. There are ways to protect your holiday further against this risk, including booking as part of a package holiday and booking with a credit card.
