Topic Consumer protection Travel insolvency insurance
Travel insolvency insurance protects package tour travellers from the financial consequences of the tour operator’s insolvency. The insurance must be taken out by the tour operator. This cover generally does not apply to trips that travellers organise themselves.
Travel insolvency insurance ensures that, in the event of the tour operator’s insolvency, travellers are refunded any advance payments they have made or – if the trip has already begun – are reimbursed for services not received and any expenses required for return transport.
This insurance must be taken out by the tour operator. In this way, a tour operator can fulfil its legal obligation to provide insolvency protection.
When does travel insolvency insurance cover apply?
This cover usually only applies to package tours, i.e. if you have booked your flight and hotel together as a package. In this case, you will be provided with the insurance certificate (Sicherungsschein) for package tours after completing the booking procedure. This contains the necessary information on the company providing insolvency protection (insurer or bank) and must always be handed over to the customer before payment is requested or accepted and before the end of the trip. This also includes advance payments.
However, if you book your flight and hotel separately, your payments will not normally be protected by travel insolvency insurance. If the travel provider you have chosen becomes insolvent, you will have to make any claims against the provider yourself.
