Do I need supplier failure or airline failure insurance?
Key takeaways
Supplier failure isn't covered as standard on every travel insurance policy, so check your policy details before buying
Scheduled Airline Failure Insurance (SAFI) covers airline insolvency, while end supplier failure can cover a wider range of travel companies
Check what protection you already have through ATOL, your booking provider, or your card before deciding what additional cover you need.
What is supplier failure insurance?
Supplier failure insurance can cover certain financial losses if a travel company you've booked with becomes insolvent or stops trading. Depending on the policy, this could include the failure of:
An airline
A hotel or other accommodation provider
A car hire company
A coach or rail operator
An excursion or activity provider
There are different types of supplier failure cover; two common terms are Scheduled Airline Failure Insurance (SAFI) and end supplier failure. The exact businesses, costs and circumstances covered vary between policies.
What's the difference between SAFI and end supplier failure?
SAFI specifically covers scheduled airline failure, while end supplier failure can cover a wider range of travel companies.
Type of cover | What can it cover? | Example |
Scheduled Airline Failure Insurance (SAFI) | A scheduled airline becoming insolvent | Your airline goes bust before you fly or while you're abroad |
End Supplier Failure | A wider range of travel suppliers | Your hotel, airline or car hire company goes bust after you've paid |
Some insurers use different names, such as "financial failure" or "supplier insolvency," so check the policy definition rather than relying on the name alone.
Is supplier failure included in travel insurance?
Sometimes, but it's not included in most policies. Analysis by Which? found that around one quarter of the travel insurance policies it checked included holiday or end supplier failure cover, while fewer than 10% included scheduled airline failure cover.
This means you shouldn't assume SAFI or end supplier failure is included just because a policy offers comprehensive travel insurance. Some insurers include this protection as standard on certain policies, while others don't offer it or may only include it with higher levels of cover.
Check your policy details before buying to see:
Whether SAFI or end supplier failure is included
Which types of travel supplier are covered
The maximum amount you can claim
Whether an excess applies
What exclusions apply
Do I need supplier failure insurance?
It depends on how you've booked your holiday and what financial protection you already have - you may already have some protection if you've booked a package holiday or paid by card. But separately booked flights, accommodation and other travel services can leave different parts of your trip protected in different ways.
How you booked | Protection you may already have | What to check |
Flight-inclusive package holiday | ATOL protection may apply | Check your ATOL Certificate and what parts of your booking it covers |
Other package holiday | Package insolvency protection should apply | Check what financial protection your organiser provides |
Flight booked directly with an airline | Usually not ATOL protected | Check SAFI and any card protection |
DIY flight and hotel bookings | Each booking may have different protection | End supplier failure can help cover gaps |
Qualifying purchase on a credit card | Section 75 may apply | Check whether your purchase meets the Section 75 rules |
Debit or credit card payment | Chargeback may be available | Your bank or card provider can explain whether you can make a claim |
Having one type of protection doesn't necessarily make the others unnecessary as they can cover different risks, so check exactly what would happen if one of the companies involved in your trip failed.
How can I find travel insurance with supplier failure cover?
You should compare travel insurance quotes as normal to find the best available prices, then check each policy to see whether SAFI or end supplier failure is included.
We don't have a separate quote journey just for supplier failure insurance - instead, you can compare travel insurance and look at the cover offered by individual policies. When you compare travel insurance:
Get a travel insurance quote: Enter your trip and traveller details as normal
Compare the policies available: Don't choose based on price alone, factor in the cover you'll get
Check the cover details: Look for terms such as Scheduled Airline Failure, SAFI, End Supplier Failure or Financial Failure
Check the limits: Find out how much you could claim if a supplier failed
Read the exclusions: Check which companies and circumstances aren't covered
Check the full policy wording: If you're unsure whether a particular supplier is covered, ask the insurer before buying
Supplier failure can be available with both single-trip travel insurance and annual multi-trip travel insurance, depending on the insurer and policy.
What does supplier failure insurance cover?
Supplier failure insurance can cover certain prepaid costs if a travel company becomes insolvent, but what you can claim depends on the policy.
Scheduled Airline Failure Insurance | End supplier failure |
The cost of unused flights if your airline fails before you travel | Accommodation |
The unused part of your flight booking | Flights |
Additional costs for replacement flights | Car hire |
Alternative transport needed to return home | Coach or rail travel |
Pre-booked excursions |
Not every policy covers all of these costs, so be sure to check your claim limit and whether the insurer pays for replacement arrangements or only reimburses eligible losses.
What isn't covered by supplier failure insurance?
Supplier failure insurance has exclusions, so a travel company going bust won't automatically mean you can claim. Depending on your policy, you may not be covered for:
A financial failure that was already known or expected when you bought the policy or booked your trip
A travel supplier excluded by the policy
Losses above the policy's claim limit
Costs that aren't included in the definition of supplier failure
Losses that can be recovered through ATOL or another protection scheme
Money you can recover directly from the supplier, booking agent or card provider
You should always read the supplier failure section of your policy wording carefully before buying.
What other financial protection could I have?
Travel insurance isn't the only protection that can help if a holiday company goes bust - what else applies will depend on what you've booked and how you paid.
ATOL protection
ATOL protects certain flight-inclusive holidays and flight bookings sold by UK travel companies. If an ATOL-protected company fails, the scheme can help with refunds before travel or arrangements to complete your holiday and return to the UK if you're already abroad.
You should receive an ATOL Certificate when you make an ATOL-protected booking, which explains what's protected and which company provides that protection.
Package holiday protection
Package holidays sold in the UK must have insolvency protection, but this isn't always ATOL - ATOL generally applies to qualifying packages that include a flight. Other packages can be protected through different arrangements, so check the information provided by your holiday organiser when you book.
If you arrange your flights, accommodation and other services separately, don't assume the whole trip has package protection.
Section 75 protection
If you pay by credit card, Section 75of the Consumer Credit Act can protect qualifying purchases where the cash price is more than £100 and no more than £30,000. Your credit card provider can be jointly responsible with the supplier if there is a breach of contract or misrepresentation, which can include a company failing to provide something you've paid for.
Section 75 can sometimes apply even if you only paid part of the purchase, such as a deposit, using your credit card.
Chargeback
If you paid by debit or credit card, you may also be able to ask your card provider to recover money through chargeback. Chargeback isn't a legal right in the same way as Section 75 - it operates under card-scheme rules and usually has time limits, so contact your bank or card provider as soon as possible if a travel company fails.
What should I do if my airline or travel supplier goes bust?
First check who you booked with and what financial protection applies before paying for replacement arrangements - you can:
Check messages from the airline, hotel or booking company: They should explain what has happened and what customers need to do
Check your ATOL Certificate: If your booking is protected, follow the Civil Aviation Authority's instructions
Contact your travel agent or package organiser: They may be responsible for replacing part of your trip
Check your travel insurance: Look for SAFI, end supplier failure or financial failure cover
Contact your card provider: Ask whether Section 75 or chargeback applies
Keep your documents and receipts: You may need booking confirmations, payment records and evidence of replacement costs
If an airline fails while you're abroad, check the latest advice from the Civil Aviation Authority before arranging your journey home.
How can I compare travel insurance?
You can compare travel insurance with MoneySuperMarket by telling us where you're going, who you're travelling with and the cover you need - and once you have your results, compare more than just the price you'll pay. If supplier failure matters to you, check each policy for SAFI, end supplier failure or financial failure cover, along with the limits and exclusions.
There isn't a separate MoneySuperMarket quote specifically for SAFI, so checking the individual policy details is the best way to find this protection when you compare.
Frequently asked questions
Is SAFI included in standard travel insurance?
Not always. Scheduled Airline Failure Insurance is only included in some travel insurance policies - June 2026 Which? analysis found that fewer than 10% of the policies it checked included airline failure cover. When you compare travel insurance, look specifically for Scheduled Airline Failure, SAFI or similar phrasing.
Do I need SAFI if my holiday is ATOL protected?
You may not need SAFI for the parts of your holiday already protected by ATOL, but the two protections aren't identical. ATOL protects qualifying bookings if an ATOL-licensed travel company fails, while SAFI is insurance against the failure of a scheduled airline, subject to the terms of the policy.
Check your ATOL Certificate and travel insurance wording to see what is already protected.
Is SAFI the same as flight cancellation or travel disruption cover?
No, a cancelled or delayed flight doesn't necessarily mean the airline has failed financially. Travel disruption cover can protect against certain delays, cancellations and other disruption, while SAFI specifically relates to an airline becoming insolvent or ceasing to trade.
Can I buy scheduled airline failure insurance separately?
Standalone SAFI may be available in the wider insurance market, but it is also included in some travel insurance policies. MoneySuperMarket doesn't currently offer a separate SAFI quote journey, so if you're comparing through us, check the details of the travel insurance policies shown to see whether airline failure is included.
Does Section 75 cover me if an airline goes bust?
It can, if your purchase qualifies for Section 75 protection - the cash price of the service must generally be more than £100 and no more than £30,000, and other conditions apply. How you booked and whether an intermediary was involved can also affect a claim.
Can supplier failure insurance cover my hotel or car hire company?
It can if your policy includes suitable end supplier failure cover. Depending on the policy, this can extend beyond airlines to accommodation, car hire and other prepaid travel services, so check which suppliers are included and the maximum amount you can claim.
Does ABTA membership mean my booking is financially protected?
Not automatically - ABTA membership can provide useful reassurance, but you should check what financial protection applies to the specific holiday or travel service you've booked. For a package holiday, your booking information should explain the insolvency protection provided.
Can annual travel insurance include supplier failure cover?
Yes, some annual multi-trip policies can include SAFI or end supplier failure cover. It isn't automatically included just because you have annual insurance, so check the policy benefits and wording before you buy or renew.
Author
Mehdi Punjwani
Insurance specialist
Mehdi is a financial writer and editor with over six years of experience in personal finance. He has written for organisations and publications including Equifax, The AA, and USAToday, covering a...
Reviewer
Beth Leslie
Senior Insurance Content Editor
Beth is an experienced writer and editor who specialises in financial and economic content. She is currently the Senior Insurance Content Editor for MoneySuperMarket. Beth is passionate about making...
