Travel Bonds by Insurance

A Travel Bond is a recognised form of Surety that ensures compliance with the Insolvency Protection requirement of the UK 2018 Package Travel Regulations.

Travel organisers can choose between a bank bond or an insurance-backed travel bond to meet their regulatory requirements.

Insurance-backed travel bonds offer a flexible and attractive alternative, as they are typically unsecured, meaning businesses do not need to provide cash collateral or major assets.

Benefits of Insurance-Backed Travel Bonds

Ideal for businesses that:
✔ Want to free up cash flow instead of ringfencing funds
✔ Prefer to balance debt and liquidity
✔ Do not have major assets to secure a bank bond

Who accepts Travel & General Insurance Services (t&g) Travel Bonds

t&g travel bonds are accepted by key regulatory bodies, including:

ABTA & ABTOT (including the BCH scheme) – appointed by the UK Government to oversee the bonding process required under the 2018 Package Travel Regulations
CAA (Civil Aviation Authority) – for both Standard ATOL and Small Business ATOL bonds
Irish Aviation Authority (IAA) – responsible for insolvency protection and licensing of travel businesses in Ireland. Our European division, Arcus Solutions, is a recognised provider of IAA bonding and full indemnity insurance. Contact Arcus Solutions for more information.

Additional Uses for Travel Bonds

t&g travel bonds are also used as payment protection guarantees by:

Rail Settlement Plan (RSP) – requiring accredited rail agents to provide a bond for guaranteed payments
Ferry and Coach Operators – often requiring travel agents to provide a payment protection bond or guarantee

Why choose Travel & General Insurance Services (t&g)?

As the Uk’s leading specialist Insurer for the travel industry, Travel & General Insurance Services (t&g) has been providing travel bonds, guarantees, and financial failure insurance for over 40 years. Our experienced underwriting team understands the travel industry and works closely with travel organisers to ensure compliance with travel regulations.

t&g travel bonds offer a practical and cost-effective solution, comparing favourably with other financial protection options.

When I first approached t&g, I was looking for a reliable financial partner to support our growth plans. I am pleased to say that t&g not only met but exceeded my expectations. The application process was straightforward and user-friendly. The team was efficient, and the approval process was remarkably swift, allowing us to move forward with our plans without unnecessary delays. The interactions with your staff were exceptional. They were always responsive, helpful, and demonstrated a high level of knowledge and professionalism. This made the entire process smooth and stress-free.

We have worked with t&g since our business was set up. The team are all great to work with, they are all always helpful, very responsive and knowledgeable.

FAQs

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

If you organise holiday packages and contract directly with consumers, you may be legally required to protect customer prepayments under the 2018 Package Travel Regulations (PTRs).

Why choose a Travel Bond for financial protection?

A travel bond is a recognised and widely accepted form of financial security.
It meets the requirements of ABTA, ABTOT, and ATOL.
It is cost-effective, straightforward, and requires minimal administration.
Insurance-backed bonds are typically unsecured, meaning you don’t need to tie up cash or assets.
Bonds can be used alongside Trust Accounts to further safeguard customer funds.

Contact the t&g Team

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