Advantage is to provide ATOL cover for member agencies alongside supplier failure insurance.
The ATOL will provide financial protection for consumers on so-called dynamically packaged holidays and the supplier failure insurance will cover agents in the event of a partner company collapsing.
Director corporate Ken McLeod said the consortium will receive the ATOL in the new year. He said it is necessary to have the ATOL as some Advantage members are dynamically packaging without full protection and could find themselves in trouble with the Civil Aviation Authority.
Director of financial services David Sharp said the supplier failure insurance policy was launched this week and could be used in conjunction with airline failure insurance.
This will allow agents to comply with Financial Services Authority regulations which apply from January.
He added: “Agents can buy it like you’re buying your own office insurance.”
Sharp said cover of up to £1,500 will cost around £2.25 while the insurance will protect supplier failure at all levels including non-bonded suppliers.