Bed bank Holiday Brokers has launched supplier failure cover to boost agents’ confidence when booking dynamic packages following the collapse of the XL Leisure Group.
The new insurance, which goes live on Holiday Brokers’ site this week, will offer agents the chance to “introduce” customers to a policy to provide financial protection should the flight, bed bank, or transfer supplier go bust.
Holiday Brokers has teamed up with Rock Insurance to offer the supplier failure cover, which will be trialled initially for around six weeks for all bookings made through Holiday Brokers’ website.
Sales director Brian Young said: “Dynamic packaging has grown substantially in the last four years and we do not want agents’ confidence to be dented by what has happened to XL. The responsible thing is for us to provide cover which gives protection in terms of customers and travel agents.”
Under the policy, up to £5,000 cover will be available for flights cancelled or delayed by more than 12 hours, where no replacement flight is offered. Similarly, up to £5,000 will be offered to find an alternative service or product if the hotel, bed bank, overseas ground handler or transfer company collapses.
“Even though agents only book the accommodation through us, we wanted a policy that offered cover for the flights booked to go to the hotels,” he said.
Agents will need to click on a tab on the Holiday Brokers’ website for more information on the policy when booking a hotel for customers. Once the booking is made, customers will be sent a voucher with reference details which they will need to enter on the insurance company’s website to receive the cover for free.
Currently, only bookings made through companies holding an ATOL are financially protected.