Insuring Travellers Against Airlines Going Under

By | September 16, 2008

We follow several different blogs in search of stories. Recently, BNET’s Travel Industry blog, which is written by the same person who writes the Cranky Flier, commented on Travel Insurance in the current environment. Edit: During our initial read, we failed to notice that the post in question, while on Brett Snyder’s Blog, was actually written by Barbara E. Hernandez, who is a business journalist. Our apologies.

Insurance is a pet issue of ours. Insurance, as we’ve said before, is purchased with the hope that you’ve wasted your money. The insurance company hopes it, because everyone who buys insurance and doesn’t use it is profit, and they can write off those who do. Passengers buy insurance with the hope nothing happens but the assurance they won’t be out hundreds or thousands of dollars is comforting.

The article is a good analysis of how most insurers do not guard against “financial insolvency”…namely not very much. Those who do bury it amidst a myriad of confusing provisions. However, a UK company is offering airline failure policies to UK residents at Protectmyholiday.com. US Companies will eventually jump on the bandwagon.

More on this to come…

Author: Guru

Guru is the Editor of Flight Wisdom and a long time aviation enthusiast.