Travel agents seeking Small Business ATOLs can now buy their required financial protection from Travel and General Group.
The Civil Aviation Authority has given approval for the insurer to supply financial protection arrangements to companies seeking ATOLs to cover up to 500 passengers annually.
The Travel Trust Association and Barclays Bank are the only other bodies offering CAA-approved mini-ATOL financial protection.
The CAA is also talking to two other companies that are keen to offer insurance options to Small Business ATOL holders.
A spokeswoman said Travel and General Group can offer a pay-as-you-go all-encompassing insurance scheme to companies selling small amounts of licensable and non-licensable products.
Meanwhile, low-cost carrier FlyBe has started offering its passengers scheduled airline failure insurance, via a three-year deal with AIG.
“This sends a clear message to customers that they can be confident when booking low fares,” said chief commercial officer Mike Rutter.
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