With the collapse of Globespan on December 16, HolidayExtras.com has stressed the importance of checking that travel insurance policies feature adequate cover for financial failures.

It has been estimated that around three-quarters of Globespan’s customers booked their ticket directly via the airline’s website. These bookings fell outside the government’s ATOL scheme which protects travel arrangements sold as packages, as opposed to individual component bookings. Those trips not protected by ATOL are covered instead by travel insurance providers who provide financial failure cover on their retail travel insurance policies .

Andrea Clayton, head of insurance at HolidayExtras.com, said: “Many travellers will be unaware that they are not covered in instances of airline collapse. The failure of Globespan accentuates the need for travellers to be adequately covered. All insurance policies bought directly from HolidayExtras.com include End Supplier Failure Cover free of charge. This cover is underwritten by International Passenger Protection Limited .”

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