How much does it cost to become fully bonded by ABTOT?
Please note that we will need you to provide forecasts and financial information to us so that we can prepare a realistic indicative quotation – we do this without charging a fee. In general terms through the following is a brief explanation of the likely the bonding and related fees:
- for the non-ATOL (no flight content) protection, ABTOT usually requires a bond set at 15% of the relevant turnover but please note that there is a minimum bond value of £20,000. We sometimes see that our member’s programmes are very seasonal and therefore the revenue received can be condensed for a short period of time. In these situations the bond value might have to be set as a higher percentage during this peak period to ensure an appropriate level of protection. Peaks in turnover are usually bonded at 20% – 25%.
- The underwriters from t&g will consider a request to provide the bond as part of the application for ABTOT membership and their premium for doing that will depend on the over-all assessment. For newly formed organisations the premium is typically 4% – 8% of the bond’s value.
How much ATOL bonding will I require?
For the ABTOT Combined Franchise ATOL, which is limited to 1,000 passengers in a year with ABTOT, we will require a bond of £25,000 if you are new to ATOL and a new applicant to ABTOT. Again, Travel & General can consider a request to provide the bond and the same rating philosophy applies.
What is the shortfall policy?
All members are required to pay into the scheme’s shortfall insurance policy. This policy is a requirement of The Department for Business, Energy and Industrial Strategy (BEIS) and is there in case the value of bonds held by the member turned out to be insufficient in the event of their financial failure.
Our ABTOT application process
Step 1 – pick up the phone and tell us about your business – Call us on 020 7065 5313
We’ll answer your questions, ask a few of our own and determine if it feels likely that we’ll be a good match.
Step 2 – send us some information
We’ll need recent accounts or a business plan and commercial backgrounds for key personnel. Once reviewed, we’ll be able to provide you with a free indication of whether we can offer terms and on what basis.
Step 3 – complete your application form
If all’s looking good and you’re happy, then complete our online application form. Now’s the time we’ll ask for the non-refundable application fee. Login details will be sent to you with a debit note including our bank details to pay the fee.
Step 4 – the ball starts rolling
Once the application form is submitted, we’ll get things moving to assessment. We may be in touch to ask for more information and may also arrange a meeting as this is a great opportunity for us to meet you and discuss your business in depth. We aim to give you a formal offer of membership within three weeks of receiving your application.
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