Travel Bonds by Insurance

  • A Travel Bond is a recognised form of security that complies with the UK Package Travel Regulations. 

    Travel Organisers have the choice of a bank bond, or an insurance backed bond to meet their regulatory requirements. Insurance backed Travel bonds are an attractive solution as they are mainly unsecured.


    Insurance backed Travel Bonds suit businesses which:

    • do not want to or need to ringfence or set aside cash or
    • want to balance debt and cashflow or 
    • do not have major assets to secure bank bonding against

    Travel & General Insurance ( t&g) is the leading Insurer in the UK focused on the Travel Industry.  We have been issuing bonds, guarantees and Financial Failure Insurance for over 40 years and have a very experienced team of underwriters who are experts in helping Travel Organisers comply with the Travel Regulations.  

    Travel Bonding by t&g is practical and straightforward and the costs compare favourably with other financial protection solutions. 

    t&g Bonds are an accepted by the following regulators:

    • ABTA and ABTOT (including the BCH scheme)  who are appointed by the Government to oversee the bonding process as required in the  2018  Package Travel Regulations
    • *t&g provide travel bonds for the ABTOT ATOL Franchise
    • The CAA who manages the Air Travel Organiser’s Licence (ATOL) scheme. t&g provide bonds for standard ATOL and small business ATOL
    • The Commission for Aviation Regulation (CAR) who administer the scheme of insolvency protection in Ireland for Travel Organisers. (Underwritten by our sister company Arcus Solutions)

    Travel bonds are also used as payment protection guarantees and are required by the following organisations:

    • Rail Settlement Plan (RSP) requires accredited Rail Agents to provide a bond to guarantee payment.
    • Ferry and Coach Operators may require their Travel Agents to provide a payment protection bond/guarantee

    Arcus Solutions

    t&g’s European bonding division
    Arcus Solutions based in France provides travel bonds and surety products across the EU to Ireland, France, Germany, Austria, The Netherlands, Belgium, Sweden and Norway.

    Find out more Travel – Arcus Solutions (


    Why do I need financial protection as a travel organiser/ tour operator?

    If you are organising holiday packages and you have the contract with the consumer you may be required to provide security to protect your customers who have made prepayments to you in advance of their Travel Arrangements.  

    This  is a legal requirement, as set out in the 2018 Package Travel Regulations (PTRs).

    Why would I choose a Travel Bond for my financial protection?

    A bond is a financial guarantee and is a recognised form of security that meets the UK regulators, ABTA, ABTOT and ATOL requirements. 

    Travel Bonds are a popular solution as they are straightforward, cost effective and do not require a large amount of administration. 

    Travel Bonds by Insurance tend to be unsecured as cash sums and other business assets are not secured  towards the bond as would normally be required to guarantee a bank bond.

    Bonds can sit alongside Trust Accounts and provide financial protection for the funds which have been paid to secure customers’ Travel Arrangements. 

  • Contact the t&g Team

    Email the team Call the team on 0207 065 5300

    Request Call Back