Agents are rushing in their droves to cover themselves against suppliers going bust following the Goldtrail debacle, a leading insolvency products provider is claiming.
International Passenger Protection Ltd (IPP), which says it is the largest provider of cover to UK travel agents, says agents no longer have faith that the CAA will compensate when operators and airlines go bust.
It says it has seen a dramatic rise in agents requesting to cover their liabilities when it comes to insolvency of suppliers and end suppliers.
It has also seen more claims this year than in its 20 year history.
IPP director Paul Mclean said: “It’s sadly become so apparent to agents the real exposures they face in their business today and if the package travel regulations are revised it seems likely the agents liabilities will increase even further.”
IPP says the rise in business can also be attributed to rival provider IGI pulling out of selling cover.
Mclean added: “Despite our long term client renewals in what is the busiest renewal period of the year in addition to the small additional volume of agents who were insured with IGI (AM Trust) before they pulled out of the market, we are seeing record numbers of new agents who have never had insurance cover in the past but suffered due to the recent collapses.”
by Dinah Hatch
