Financial Failure Insurance

Financial Failure Insurance (FFI) protects your customers’ money if your business stops trading. The Financial Failure Insurance we can organise complies with the UK Travel Regulations and is an approved alternative to a travel bond under the UK Travel Regulations. It is often chosen by start-ups or younger travel companies because it can support cash flow and keep upfront costs lower.

How FFI compares to a Travel Bond

• Lower upfront cost: you pay a deposit, then pay monthly premium based on confirmed bookings. Our FFI premiums are the same as bond premiums but they can help travel organisers cash flow as they are a pay- as- you -go solution.
• More admin: you must report monthly bookings instead of quarterly declarations.
• Bonds: pay all fees upfront and have simpler admin.

Eligibility

To apply for FFI through ABTOT, you must be:

• A small to medium-sized travel organiser
• Able to demonstrate a minimum of £10,000 paid-up share capital
• First year 12-month projections are over £45k
• Able to meet ABTOT’s financial assessment criteria

Financial Failure Insurance cost structure

FFI involves a deposit at the start of the policy, and then monthly premiums based on the value of confirmed bookings. This helps manage cash flow, especially for seasonal or newer businesses:

• Flexible payment structure: Members pay 20% of the annual premium upfront, with the remaining balance settled through monthly passenger and revenue declarations.
• Monthly declaration: The annual premium quoted is applied to the monthly revenue declarations.
• If Members actual figures are higher than projected figures the agreed premium is applied to the additional revenue declarations. There is no penalty.

The FFI policy we can organise is the topp policy

The topp policy is one of the most widely recognised and trusted financial protection products in the UK travel industry. It is underwritten by our sister company, Travel & General Insurance (t&g), who have decades of experience supporting tour operators.

How to Apply

1. Speak to ABTOT’s Business Development Team
2. Supply financial information for the initial assessment
3. Demonstrate you can organise a minimum of £10k paid-up share capital
4. Once we have offered indicative terms, complete the application form, pay the deposit and Membership fee
5. Begin monthly declarations

Who FFI is ideal for

• New SME travel start-ups
• Emerging tour operators

• Operators who need a flexible payment solution
• Travel Organisers preferring a pay as you go scheme

FFI does not cover supplier failure. Separate Supplier Failure Insurance is required for that.

Ready to protect your customers and simplify compliance?

Our team will guide you through every step – from assessing your business model to arranging your Financial Failure Insurance.

Call 0207 065 5313 or email enquiry@abtot.com