Financial Failure Insurance - Frequently Asked Questions
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.
How long does approval take?
Once the underwriter has received all the required information, itl typically takes up to two weeks while they complete their risk assessment. If they have any queries, they will contact the applicant directly to discuss these and may request further information.
Can I switch from FFI to a bond later?
Yes, you can choose to move from FFI to a Travel Bond at the time of your ABTOT Membership renewal.
Does FFI satisfy the Package Travel Regulations?
Yes, FFI is an approved solution for travel organisers to provide insolvency protection and comply with the UK Package Travel Regulations (PTRs. ) The policy we organise, topp meets the PTR requirements.
Does FFI cover ATOL flight packages?
No, the Package Travel Regulations require businesses selling package holidays in the UK to have insolvency protection through ATOL for Flight packages.
Applicants can apply to the ABTOT ATOL Franchise for an ATOL and benefit from savings on application fees and reduced administration.
Do I need to join ABTOT to get FFI?
No. Applicants can seek out a standalone Financial Failure Insurance policy directly from an insurer.
However, by arranging FFI through ABTOT, you also benefit from being part of a UK Government-approved, regulated scheme. ABTOT Membership provides independent oversight of your financial protection, use of a consumer-recognised logo, and access to free business advice through ABTOT’s Associate network and webinar programme.
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