Scheduled Airline Failure Insurance: Do You Really Need It?
When airlines fold amid financial pressures, customers suffer cancelled journeys and chase refunds in vain. Yet while such failures generate headlines, adding specialised products like Scheduled Airline Failure Insurance rarely proves essential for most travellers when easier protections exist.
This guide helps travel partners determine suitable protections in case the worst unfolds mid-trip.
- Evaluating Real Risks of Airline Collapses
- Drawbacks of Airline Failure Insurance
- Smarter Protection Alternatives
- Meeting Clients’ Needs Through Better Solutions
Evaluating Real Risks of Airline Collapses
Though media broadcasts aviation industry warnings, the likelihood of individual
passengers getting impacted on specific trips actually remains low with factors like:
The UK tightly regulates airlines, preventing them from rapid, risky expansion. This stops struggling airlines from selling too many tickets they can’t afford to fulfil.
Many airlines are owned by just a few large airline groups so if one airline fails, the group often keeps flights running by merging routes into other airlines they own. This prevents major travel disruptions.
If an airline shuts down in the UK, laws make sure ticket holders get priority for refunds from any remaining funds. This lowers losses for passengers.
Drawbacks of Airline Failure Insurance
Since most flights go on as planned even if an airline fails, flight insurance may not be worth it for many travellers when you consider:
- Narrow Coverage – Policies only reimburse cancelled trips specifically resulting from a named airline failure. Other disruption causes or overall supplier failures often exclude cover.
- Premium Costs – SAFI premiums ranging £15-40 per trip still add up, especially for frequent travellers.
- Claim Hassles – Processes documenting unused flights and out-of-pocket costs accompany claims, adding additional hassle.
Smarter Protection Alternatives
Rather than airline failure policies with limited applicability, experts recommend broader plans cushioning wider risks while including airline failures as covered events. Options include:
Comprehensive Travel Insurance
Comprehensive travel insurance covers you if your flight is cancelled, delayed, or disrupted from an airline failure. These plans cost less than specialised flight insurance, offering better value.
Paying slightly higher flexible ticket prices eliminates cancellation costs worries if any factors impact journeys. Travellers can simply request refunds if trips get aborted for any cause.
Payment Method Claims
If you book with certain premium credit cards, the card allows you to dispute the charges and get your money back if part of a trip fails and a refund claim is denied. This acts as self-funded coverage.
Meeting Clients’ Needs Through Better Solutions
While preparing for worst-case scenarios is wise, clients gain more financial security against trip problems through conventional insurance plans. These offer similar or lower costs compared to niche airline failure policies with trickier claims.
Smart travel agents recommend comprehensive trip insurance and flexible tickets. These address broader risks beyond just airline bankruptcies, showing care for clients’ budgets.
Brisco Business’ Travel Agent Insurance
Brisco Business provides travel agent insurance that covers advising clients on add-on tours, if a mishap occurs abroad. Our plans show real commitment to protecting both agents and clients.
Contact us to discuss airline uncertainty risks and smart solutions. We build reputations for proactively caring about client investments – not just reactively fixing issues if trouble hits.
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