Supplier Failure Cover - Terms and Conditions

What is Supplier Failure Cover?

A Supplier Failure Cover is an insurance policy that is offered to protect you if any part of your holiday is disrupted due to a supplier going into liquidation. Most general travel insurance policies do not cover individually booked holiday components.

What do you mean by 'Supplier'?

We consider a 'supplier' to be any provider of a flight or transport, your accommodation, transfers to or from your accommodation and car hire. This means that every part of your holiday should be covered. Please read the policy wording for specific definitions.

Do I still need to purchase a travel insurance?

A Supplier Failure Cover offers an additional protection for separately booked holiday components and is not a substitute for a standard travel insurance policy. You will still need to purchase travel insurance in addition to this cover. If you are planning on taking part in adventure activities or winter sports on your holiday, please ensure your travel insurance policy offers adequate cover.

I have travel insurance, do I still need Supplier Failure Cover?

Most travel insurance policies do not cover scheduled airline failure and none of those policies include Supplier Failure Cover. To ensure that you are completely protected financially, you will need to take a Supplier Failure Cover policy, in addition and not alternative to, your standard travel insurance policy.

What does the Supplier Failure not cover?

The policy will not cover any costs incurred if you decide not to travel or any costs which are refundable, or recoverable, from companies that are bonded or insured elsewhere. Costs mentioned in the General Exclusions will also not be covered - see the policy wording.

What happens if an airline I have booked goes into liquidation?

If you are already on your holiday and your airline will not bring you home, the policy will cover the cost for each insured person, to buy a ticket home with another airline, up to a maximum total claim of £1000 per person.

If you have a holiday booked and are yet to travel, the policy will cover any financial loss you may face if you are unable to replace the flight tickets. If your airline has gone into liquidation, the policy will cover the difference in cost between the original flights and the replacement flights booked through sunshine.co.uk.

I've paid by credit card for my holiday, do I still need the Supplier Failure Cover policy?

If you want to be sure you are fully protected, you will still need to take out Supplier Failure Cover.

Most credit card companies only protect their cardholders against the failure of the company with whom the card transaction has been made and not the companies to whom the money is passed onto i.e. the airline, the accommodation supplier etc. In addition to this, most costs under £100 are not usually covered by credit cards and the repatriation costs are, in most cases, the responsibility of the traveller.

My flight is booked through an ATOL protected company, do I still need the Supplier Failure Cover?

Flights booked through an ATOL protected company will only be covered up to the original cost paid if you have not yet travelled and to assist you getting home if you are overseas. ATOL does not protect you if the airline or operator simply cancels the flight. Unlike ATOL, a Supplier Failure Cover policy also covers your accommodation, transfers and other holiday components meaning you can continue your holiday.

What are the terms of the policy?

To be entitled to cover under this insurance you and all persons named on this policy, on whose behalf you have permission to apply for this insurance, must understand and agree to the following:

1. I/We can confirm that each person named on the Certificate and for whom the appropriate premium has been paid, are resident in the European Union (i.e. have their main home in the European Union and not spent more than 6 months abroad in the year prior to purchasing the policy).
2. I/We must tell sunshine.co.uk if I/We know about anything that may affect my/our insurance. Please contact us here if you need to tell us anything.
3. I/We understand that this policy is intended to supplement a full travel insurance policy. I/We will read the wording and ensure the cover I/We have purchased reflects our requirements.
4. Any information provided to the Underwriters regarding the Insured Person(s) will be processed by the Underwriters, in compliance with the provisions of the Data Protection Act 1998, for the purpose of providing insurance and handling claims if any, which may necessitate providing such information to third parties.

sunshine.co.uk is an appointed representative of ITC Compliance Limited which is authorised and regulated by the Financial Services Authority.