Broker Marcus Hearn has launched an updated version of its scheduled airline failure insurance.

It said it was relaunching the cover to protect clients at a time of great uncertainty and financial pressure for carriers.

The policy insures agents against the cost of refunding tickets in the case of a scheduled airline liquidation or bankruptcy.

The cover is approved by the Civil Aviation Authority (CAA) and the Association of Airline Consolidators. This means that agents' clients are also protected in the event of a scheduled carrier failure, which minimises the agents' liability.

Managing director Jeffrey Klipp said: "Taking out a policy of this nature is the most straightforward way for an agent to comply with the CAA requirements for protecting passengers in the event of airline failure."