Broker Marcus Hearn has launched an updated version of its "scheduled airline failure" insurance product to protect travel agents against the cost of refunding tickets in the case of scheduled airline liquidation or bankruptcy.
The broker said there had been a "dramatic increase" in interest in the policy with so many airlines under severe financial pressure.
It added that the risks to agents in the current circumstances were considerable: "The failure of only a mid-size carrier could typically leave an agent with bills of £25,000 to £30,000 to meet for unprotected clients."
The product is approved by both the Civil Aviation Authority and the Association of Airline Consolidators.
Marcus Hearn managing director Jeffrey Klipp said: "Taking out a policy of this nature is the most straight forward way for an agent to comply with the CAA's stated requirements for protecting passengers in the event of airline failure."
