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Travel insurance with insolvency cover

How to get travel insurance for insolvency. Compare brands that can help.

What you need to know

Get travel insurance for insolvency

The following is a list of travel insurers who offer cover for travel provider insolvency:

BrandCover limitYou can get covered forApply
Insure4Less Travel Insurance Logo$5,000
  • Value of the unused arrangements
  • Reasonable cost of rearranging your trip
Get quote
Travel Insuranz Travel Insurance Logo$5,000
  • Value of the unused arrangements
  • Reasonable cost of rearranging your trip
Get quote
World2Cover Logo
$10,000
  • Reasonable costs for You to arrange the same or similar standard of transport and accommodation
Get quote
Covermore logo$10,000
  • Reasonable cost to rearrange journey
  • Pay the non-refundable unused portion
  • Reasonable Additional hotel accommodation expenses
Bonus
Get quote
Picture not described$10,000
  • Reasonable cost to rearrange journey
  • Pay the non-refundable unused portion
  • Reasonable Additional hotel accommodation expenses
More info

Note: This information was last updated September 2023

Tips to protect yourself

Minimise your risk before booking your holiday by:

  • Paying for it with your credit card
  • Checking with your travel agent to see if they have their own insolvency protection cover
  • Reading your travel insurance policy carefully to understand what you are covered for in such situations

If you are unable to recover your money any other way, some Australian states and territories have programs in place where you can claim compensation for losses to insolvent companies. You can find out more by contacting the ACCC.

Finder survey: What is the biggest concern for Australian travellers?

Response
Flight disruptions/cancellations57.82%
Being hospitalised47.75%
Losing luggage/belongings46.4%
Crime - theft35.97%
Catching COVID-1920.68%
None of the above8%
Other1.44%
Source: Finder survey by Pure Profile of 1112 Australians, December 2023

Credit card chargebacks: What are they, how do they work and how long do I have?

Currently in Australia, a credit card chargeback is one of two ways you can get your money back if your travel agent goes broke. This is only because there are consumer protection rules associated with the use of Visa, MasterCard and American Express credit cards.

When you apply for a credit card for a chargeback, your provider will examine the evidence and if they find cause will reverse the transaction, which returns the money paid to your credit card.

As long as you purchased your holiday on your credit or debit card and selected "credit" when you paid, you have a good chance of being compensated for travel agent insolvency.

Common reasons for chargebacks include:

  • Unauthorised transactions. Someone uses your credit card details without your permission.
  • Duplicate processing. You are charged more than once for a purchase.
  • Direct debits. A direct debit continues after you have cancelled it.
  • Merchandise not received. You do not receive the merchandise or service you paid for (this would include travel agent insolvency).

While chargebacks can be a lifesaver, it’s important to remember there are time limits. These limits vary but generally you have between 30 and 120 days from payment to apply for a chargeback.

Don’t get caught out

With only a handful of Australian insurers covering travel provider insolvency and none covering travel agent insolvency, sometimes a traveller’s only recourse is to either use their credit card to pay for their holiday or find a travel agent with insolvency protection.

Before taking out a travel insurance policy, make sure you’ve checked if it covers provider insolvency at the very least.

How do insurers treat insolvency?

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