Financial Failure Insurance

  • ABTOT can organise Financial Failure Insurance (FFI) an as an alternative to the ABTOT Bond.

    The Financial Failure Insurance we use is in the form of the trusted topp policy, which is widely recognised in the UK travel sector and underwritten by our sister company Travel & General Insurance Services (t&g).

    topp usually requires travel organisers to have been trading for two years, however it is available to start-ups via ABTOT if they meet ABTOT’s criteria.

    Financial Failure Insurance can be useful for start-up travel companies or emerging companies as upfront costs are competitive and you do not need to accurately forecast sales without any previous trading to rely on. A deposit is paid upon policy inception together with Membership fees, then financial protection is only paid on confirmed bookings, which are declared and paid for monthly and renewed annually.

    A Financial Failure Insurance policy does require more administration than bonds, as bond declarations are submitted quarterly, and all fees are paid annually at Membership offer or renewal.

    We process new Financial Failure Insurance applicants in the same way as we process bonded enquiries. The first step is to have a call with the Business Development Team who will be able to assess if you meet our criteria. Applicants need to be:

    • a small to medium sized travel organiser 
    • a Principal (travel organiser/tour operator) or Linked Travel Arranger
    • able to demonstrate that they have or can have £10k paid up share capital
    • able to meet the initial financial criteria 

    Find out more about the process


    Will Financial Failure Insurance protect me against the financial failure of suppliers?

    No. Travel & General Insurance, our sister company, can provide quotations for Supplier Failure Insurance, as well as the other important policies such as Tour Operator Insurance.

    What is the best way to comply with the UK Travel Regulations? Travel Bond, Financial Failure Insurance or Trust Accounts?

    As an approved body, ABTOT is often asked “what is the best way to comply with The Package Travel and Linked Travel Arrangements Regulations 2018 (UK Travel Regulations)?”

    There is no one-size-fits-all ‘best’ solution – each option has advantages depending on the travel organiser’s size, programme, and ambition. The only constant is that every travel organiser packaging non-flight holidays must have some form of approved financial protection in place.

    More FAQs
  • Contact the ABTOT Team

    Email the team Call the team on 0207 065 5313

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