International Insurance Consultants
Industry Requirements
ABTA
As an agent it is a condition of ABTA membership that a bond is provided. Currently a new member conducting agent business will be required to provide an ABTA bond in respect of that business at the following rates on the annual rate of Applicable Risk Turnover (ART):
Principal (Non-Licensable Bond)
As a principal, who organises non-licensable packages (two components of travel arrangements not including flights), you are required to have financial protection in place for your customers. As an ABTA member, ABTA can provide an ABTA bond for your non-licensable activity in order to satisfy legal requirements. This is usually 15% of gross turnover for new members, with a minimum of £5,000 although higher bonding levels will apply under certain conditions specified by ABTA.
In the event that you are acting as a principal, with single element sales (e.g. Accommodation only, ) the law does not require you to have financial protection in place for your customers, but you can choose to do so.
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Applicable Risk Turnover
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ABTA Bond Required
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£1,000,000 or less
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£37,500 minimum amount
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£1,000,0001 - £2,000,000
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£37,500 + 3% of ART excess over £1m
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£2,000,001 - £5,000,000
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£67,500 + 4.5% of ART excess over £2m
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Over £5,000,000
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£202,500 +2.25% of ART excess cover
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Application Form
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