Secure your customer's money by bonding your company. It is a legal requirement for Tour Operators to have a bond in place, but travel companies who do not provide a package may also consider this option.

Protecting Customers Deposits and Payments

In common with other corporate insurances, we have access to the main bonding markets and described below are the various options available for travel companies.

Under the Package Travel Regulations (‘PTR’) there is a legal requirement for travel companies to protect customers’ deposits (all monies paid to you), in the event of your insolvency.

If your firm does not fall under PTR you may nevertheless consider protecting your customers’ deposits for commercial reasons anyway. In which case the Passenger Protection Insurance (see below) would usually be the most appropriate.

Bond from an Insurance Company

You can obtain a bond from an insurance company (via MPI Brokers) which is usually made in favour of the Association of British Travel Agents (ABTA) or other trade bodies who accept bonds. The premium will be set based on the strength of your company and the balance sheet, and will be a rated on the value of the bond. This is usually unsecured but may require a first charge or debenture over your company.

Bond from Your Bank

You may approach your bank to obtain a bond which again would be in favour of a trade body. This will be secured and would therefore in normal circumstances be at a lower cost than the insurance route. The disadvantage of this option is that it ties up assets or if there are no free assets available, it is unlikely a guarantee will be provided.

Trust Account

You may set up a Trust Account with your bank and appoint trustees (usually a lawyer and an accountant) to run the account. All receipts from customers must be placed in that account and no monies may be released, including your commission until the customer has returned from their holiday, which could be several months.

Passenger Protection Insurance

You may enter into a ‘Master Policy’ arrangement with an insurer (via MPI Brokers) where your customer will have an interest under the policy who, in the event of your insolvency, would have a right of claim under the insurance. They would usually have to exhaust other means first such as recovery from credit card if applicable.

If you wish to discuss any of these options further please do not hesitate to call us on 01428 664265 and in order for us to obtain terms on your behalf for either of the insurance arrangements described above, please click on the appropriate button to obtain a proposal form.



Ajax Loader

If you require any help or information regarding your choice of policy, a claim or any aspect if our products or services and you can't immediately find an answer here on our website or in our FAQ, then please feel free to contact us using this form.

Please enter your name!
Brief description
Please enter your email!
Write your message!

MPI Brokers Head Office
West House, 19-21 West Street
Haslemere, Surrey, GU27 2AB
United Kingdom
Contact Us

For corporate calls - 01428 664265

World Snow Awards

Copyright © 2002-18 MPI Brokers.

All rights reserved.


Michael Pettifier Insurance Brokers Ltd. trading as MPI Brokers, Mind The Gap Year, MPI Don’t Stop Me Now and Douglas Cox Tyrie is authorised and regulated by the Financial Conduct Authority FCA number 308481

Mountain View

Become an MPI Brokers Affiliate
By becoming an affiliate you are an unregulated introducer in respect of regulation. Link your customers from your website to MPI's award winning specialist travel and ski insurance policies and earn commission.

Learn More