Please Note - If you are cruising around Australia you need to select Pacific.
With Regions, variances can apply for Bali, Indonesia, Japan and Middle East.
You are not required to enter stop-over countries if your stop-over is less than 48 hours.
Does Travel Insurance Cover Insolvency?
If you think travel insurance covers insolvency you’re not alone. Most travellers expect their insurance to cover airfares, tour bookings and accommodation if a company collapses – but unfortunately, and to quote the Rolling Stones… you can’t always get what you want.
Most standard policies do not provide protection for insolvency, collapse or default of airlines, travel agents, wholesalers, cruise operators, tour operators, hotels, car hire companies, railways or theme parks.
Trying to get your head around what insurers mean when they say ‘they DO cover for insolvency of a travel service provider’, but DO NOT cover for financial collapse of any transport, tour or accommodation provider is tricky to say the least’.
Don’t worry it’s not all bad news – you can get what you need. You just need to know where to look and that’s where we come in. We’ve put together a table explaining who-covers-what below to make it easier to understand. SCROLL FOR MORE INFORMATION.
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Who’s Covers financial collapse?
| Insurer | Underwriter | Conditions | Buy Now |
|---|---|---|---|
 1Cover |
Certain Underwriters of Lloyds |  They do not cover insolvency of any travel agent, tour wholesaler, tour operator or booking agent. Exclusions apply. Please read PDS for full details. |
Go To Insurer |
 Cigna |
Cigna Like Insurance New Zealand Ltd | They do not cover insolvency of any travel agent, tour wholesaler, tour operator or booking agent. Exclusions apply. Please read PDS for full details. |
|
 QBE |
QBE Insurance Australia |  (Cover only available on Leisure International and Frequent Traveller policy options.)We will pay you up to the applicable limit as set out in the Schedule of Benefits for the cost of rearranging your trip if it is cancelled due to the failure of any tour operator, accommodation provider, car rental agency, theme park, scheduled airline or other carrier to provide services or accommodation due to their financial default. |
|
 STA Travel |
Allianz Australia Insurance Limited | Cover if you have to re-arrange or cancel your Trip due to the Insolvency of a Travel Services Provider, then we will pay: a) Re-arranging your Trip, b) Travel costs, c) Travel agent’s cancellation fees and d) Additional expenses. |
|
 Southern Cross Travel Insurance |
Southern Cross Benefits Limited Trading | They do not cover insolvency of any travel agent, tour wholesaler, tour operator or booking agent. Exclusions apply. Please read PDS for full details. |
|
 TINZ
|
Certain Underwriters of Lloyds | They do not cover insolvency of any travel agent, tour wholesaler, tour operator or booking agent. Exclusions apply. Please read PDS for full details. |
Go To Insurer |
 Webjet
|
Allianz Australia Insurance Limited | Cover if If your journey is cancelled, shortened or rescheduled due to the insolvency of a travel services provider then we will pay: a] the non-refundable portion of unused prepaid travel or accommodation arrangements scheduled to be used during your journey, b] for the value of frequent flyer points, air miles, loyalty card points, redeemable vouchers or other similar schemes lost by you, c] your reasonable costs of rescheduling your journey, d] the reasonable additional accommodation and travel expenses incurred if you have to return home. |
Go To Insurer |
 Zoom Travel Insurance
|
Certain Underwriters of Lloyds | They do not cover insolvency of any travel agent, tour wholesaler, tour operator or booking agent. Exclusions apply. Please read PDS for full details. |
Go To Insurer |
Who’s At Risk?
If you’re a do-it-book-it yourself kind of traveller and buy your flights direct with an airline then you’ll be the most vulnerable when it comes to protection. If you use a travel agent to book your holiday and the airline goes bust, you might be able to get a refund through the agent, or they may be able to help get you home if you’re stranded overseas.
Pay With Your Credit Card
Even if you do tend to book your travel arrangements yourself, a good way to ensure protection is to pay using a credit card. The credit card company might be able to recover your money or you might be able to claim under your credit card insurance. Try not to buy your travel arrangements using a debit card as they don’t provide the same level of protection.
Help Is At Hand
In some states and territories programs are in place where you may be able to apply for compensation for insolvent companies. Contact the New Zealand Competition and Consumer Commission for more information.
Read The Small Print
We’ve simplified the insurers' policy wording in the table above, but this doesn’t mean you can get away without reading it. We know it’s not a great read but it’s really important to understand the cover you’re purchasing – so give your insurers PDS a read! If you’re not sure that you understand the conditions you can always call the insurer for advice before buying online.
Compare To Find The Right Cover
Shop around for insurance to make sure you are getting the right cover for your travel needs. You can use comparetravelinsurance.co.nz to compare over 20 Aussie insurers in seconds. Yippee!
Insolvency
An insolvent company is one that is unable to pay its debts when they are due. The three most common insolvency procedures are voluntary administration, liquidation and receivership.
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