Speaking at the MPI-sponsored event, Managing Director Michael Pettifer said tour operators are legally required to signpost their customers to a suitable travel insurance – and this is especially important when a customer books for a group holidaying together.

He warned that failure to arrange adequate insurance could lead to costly problems for unwary leaders of holiday groups.

He said: “It’s great for friends to share a chalet, yacht, hotel or villa, but one person has to take legal and financial responsibility for the trip.

“The leader enters into the contract and pays for the holiday. This person should have adequate insurance to protect him – and the group – if the trip is cancelled.

“In the event of cancellation it is only the party leader who has the insurable interest and is able to claim.

"It is usual with all travel companies' terms and conditions for the cover to be in place immediately the trip is booked.

“Individuals in the group may have their own travel insurance but may not be able to claim under the cancellation section, as they did not pay for the trip.

"Group members should always check that their leader has ample cover in case anything goes wrong."

He said group leaders should also be insured for any damage to the holiday accommodation, caused by members of the group.

"Without such cover the leader risks being unprotected."

He said MPI insurance was ‘suitable’ because of the levels of liability cover provided for party leaders contracting with tour operators. MPI’s in-house claims service was another major benefit.