bonding by insurance
introduction
Why do I need bonding?
Travel organisers in the UK are required by law to provide financial protection for their customers’ prepayments in respect of ‘package’ holidays
Bonding is recognised by the regulatory authorities as the most effective means of providing this consumer protection. The Civil Aviation Authority (CAA) requires that a bond is in place as a condition of granting an ATOL to all travel organisers which have been trading for under four years, or which do not meet their criteria, and many other regulatory associations insist on a bond as a condition of membership.
Why bond by insurance?
Bonding by insurance is practical and straightforward and the costs compare favourably with the alternatives
Bonding by insurance also has additional advantages as cash sums and other business assets are not tied up as they would be normally to guarantee a bank bond. Trust accounts can be a barrier to growth, restrict cash flow and are administratively burdensome. Mid-term variations to your bond, if arranged by insurance, are straightforward to put in place. Bonding by insurance is the ideal way to meet your regulatory requirements and is suitable for all types of travel organisers
