All members must provide a bond in order to comply with their obligations under the Regulations. A bond can be provided by t&g or can also be obtained from your bank and is calculated as a projection of your expected non-licensable turnover.
This is a formal undertaking to pay a sum of money to ABTOT in the event of the member’s financial failure, primarily for the purpose of reimbursing customers who would otherwise lose money.
We won’t need you to provide a bond until you have been notified that your application has been approved, at which time the formal bond document will be sent for completion by the your bank or insurance company. As ABTOT is administered by t&g, t&g can provide an efficient and competitive quotation for your bonding requirements.
The level of bond required varies from member to member. Our membership team will tailor the bond to account for the aspects of your particular business. The minimum bond requirement is £20,000.
For travel organisers whose turnover is concentrated over a short period, such as school and ski operators, they may be required to increase their bonding levels during the peak period. At other times we understand that you may not have deposits to protect so we are able to tune a policy to cover your individual requirements, saving your business money.
We review the performance of our members every year. If we feel that members are complying well with the demands of the scheme and performing well financially we may look to adjust our bonding requirements.
Shortfall Insurance Contribution Scheme
In addition to the bond, members are required to contribute to the shortfall insurance scheme established by ABTOT and administered by t&g, to cover against shortfalls in members’ bonds. This second line of defence will only be used in the event the underlying bond proves insufficient. Each member is required to contribute to the scheme, and this is why ABTOT applies its minimum financial criteria assessment on each applicant. The amounts payable to the scheme is dependent upon the size of bonded turnover. For more information please see FEES.
Other insurance products
Through our relationship with t&g we can offer a range of other products. If you would like to find out more about Liability insurance or selling travel insurance please get in to touch. Their website for more information is HERE.