International Insurance Consultants
An insurance backed bond which satisfies regulatory requirements for all types of travel organisers.
Travel organisers in the UK are required by law to provide financial protection for their customers’ prepayments in respect of “package” holidays. Bonding is recognised as an effective means of providing this consumer protection
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Why Consider a Bond?
The Civil Aviation Authority (CAA) requires that a bond is in place as a condition of granting an ATOL to all travel organisers which have been trading for under four years, or which do not meet their criteria, and many other regulatory associations insist on a bond as a condition of membership.
An insurance backed bond has a number of advantages:
- Cash sums and other business assets are not tied up as they normally would with a guarantee bank bond.
- Furthermore, there is no need for Trust accounts to be created, which can be a barrier to growth, restrict cash flow and involve an administration nightmare.
- It is relatively easy to provide mid-term variations to your bond if arranged by insurance
An insurance backed bond which satisfies regulatory requirements is suitable for all types of travel organisers.