How to Secure a Travel Bond
The step-by-step process on how to secure a travel bond.
Travel & General Insurance Services (t&g) has been operating for 40 years as a specialist insurer and broker for the travel industry. We understand the travel sector inside and out, and our team is renowned for its expertise, knowledge, and personal service in securing a travel bond. Our insurance-backed bonds have underwritten ABTOT, ABTA, and ATOL bonds for the past four decades.
Travel bonds cannot be issued without a regulator confirming:
a) that they accept the client’s application; and
b) issuing a decision letter which states the value of the bond required to secure the licence.
Step One
The first step to secure a travel bond is to confirm that you are trading as a Travel Organiser and identify which regulator you need to contact.
If they offer package holidays that do not include flights, applicants must apply for ABTOT or ABTA membership. The Department for Business and Trade approves ABTOT and ABTA to operate regulated financial protection bonding schemes for travel organisers that must comply with the UK Package Travel Regulations.
To determine whether you are a non-flight package organiser, refer to pages 4–11 of the UK Package Travel Regulations.
If you are selling flights or flight-inclusive holidays, you must apply to the CAA for an ATOL or to ABTOT, which can issue ATOLs under its. ATOL Franchise scheme.
Step Two
Once you have received your regulator’s decision letter, you can apply to us to see if we can underwrite your ABTOT, ABTA or ATOL bond.
When you contact us, we will arrange a call to discuss your enquiry in more detail and understand your intended bond start date. We will request supporting financial information and copies of your correspondence with the regulator, which our underwriters will use to complete their risk assessment.
Step Three
Our underwriters may contact you to discuss your financials in more detail before confirming our annual terms. If we are able to offer terms, we will send you an indication of the annual premium. Once the terms are accepted, we will issue a final cost quotation. The premium must be paid before the regulator can issue the bond.
Our Business Development Team will be happy to answer any questions you may have about your application’s progress at any point during the underwriting process.
Request a Call Back
All fields are required
