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Supplier Failure Insurance (SFI)

For Travel Businesses
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What Is Supplier Failure Insurance?

Supplier Failure Insurance (SFI) protects your business when a contracted supplier becomes insolvent. In the travel industry, supplier collapse can trigger cancellations, refund demands, and severe financial loss. SFI ensures that your customers are refunded or rebooked, while your business remains financially stable and operationally resilient.

At TMU Management, our SFI policies are designed for the realities of modern travel supply chains, where multiple providers across different markets and currencies create significant risk exposure. By embedding this cover, you reduce vulnerability to unforeseen insolvencies and safeguard both your customer promise and your balance sheet.

Who We Cover

TMU Management provides tailored Supplier Failure Insurance solutions for a wide range of organisations in the global travel ecosystem. Whether you rely on airlines, bed banks, DMCs, cruise operators, or technology partners, our solutions are designed to protect against insolvency exposure throughout your supply chain. Because every travel business is unique, we also create bespoke policies tailored to your risk profile and compliance needs.

Tour Operators

Protection for consumer funds, supplier payments, and operational continuity, meeting Package Travel Regulation compliance and acquirer requirements.

Travel Agencies

Safeguarding client money and operational resilience while meeting licensing and bonding obligations.
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Online Travel Agencies (OTAs)

Specialist cover to manage high transaction volumes, multi-supplier risk and international booking flows.
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Homeworking Groups

Centralised protection for distributed agent networks, ensuring compliance and consumer confidence.

Airlines

Cover to protect ticket revenues, manage repatriation risks, and support financial resilience in a highly regulated, high-volume market.

Cruise Operators

Protection for passenger funds, advance bookings, and global supplier arrangements, safeguarding reputation and customer confidence.
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Travel Technology Platforms

Insurance solutions that integrate seamlessly into booking and payment systems, providing built-in protection for partners, suppliers and end customers.

The Key Benefits of Our Supplier Failure Insurance

Package Travel Regulation Compliance

Ensure compliance with the Package Travel Regulations by protecting customer funds in the event of supplier insolvency.

Supply Chain Stability

Minimise disruption from the collapse of airlines, accommodation providers, or other key suppliers.

Customer Confidence

Give travellers peace of mind that their holiday will be honoured, even if a supplier fails.

Bespoke Cover

Policies are designed specifically for your business model and supply chain dependencies.

Financial Resilience

Protect your cash flow and avoid losses that could compromise business continuity.

Industry Expertise

Our specialist knowledge ensures your cover reflects the real-world risks of the travel sector.

What's Covered Under Our Policy

Supplier Failure Insurance provides protection in the event that a contracted supplier becomes insolvent, ensuring continuity for your business and protection for your customers. These are only examples, and the precise inclusions, exclusions and details of cover will be set out in your final insurance policy.

Included

  • Insolvency of contracted airlines, accommodation providers or cruise operators
  • Insolvency of ground handlers, DMCs, or other key service providers
  • Reimbursement or rebooking of affected customer arrangements
  • Business continuity protection for the insured organisation

Not Covered

  • Fraud or wilful misconduct
  • Insolvency outside the scope of the policy (e.g. non-contracted suppliers)

Get Supplier Failure Insurance for Your Travel Business

If you need insurance that’s built around how your business really works, TMU Management is ready to help. Our team will explore your supplier network, assess your risk exposure, and design a bespoke solution that safeguards your customers and your operations.
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Why Choose TMU Management For Your Supplier Failure Insurance

TMU goes beyond generic cover. We provide insurance built specifically for the global travel trade, integrating protection across your supplier relationships to keep you compliant, resilient, and trusted. With our support, insolvency no longer has to mean disruption. Instead, you gain the tools to protect your customers, safeguard your financial health, and grow with confidence.

Our Latest Case Studies

We have supported a wide range of travel organisations in reducing supply chain risk.
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Xander Pay

TMU and Xander Pay embed insurance-backed payment protection to secure hotel-agent settlements, improve liquidity and reduce financial risk.
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Travel Ledger

TMU and Travel Ledger embed protected payments insurance into the platform to secure agent-supplier settlements, improve liquidity and enhance trust.
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Travel Counsellors

See how TMU helped Travel Counsellors embed supplier airline failure insurance, safeguarding client funds and boosting trust globally.

Frequently Asked Questions

Can SFI help with regulatory compliance?
Yes. Supplier Failure Insurance supports compliance with the Package Travel Regulations by ensuring consumer funds are protected if a supplier collapses. This reduces both regulatory and reputational risk.
Is SFI suitable for all travel businesses?
Yes. Whether you are a tour operator, travel agency, OTA, or cruise operator, if you rely on contracted suppliers, you face insolvency risk. We design policies tailored to your business model and supply chain.
What happens if one of my key suppliers fails mid-season?
SFI provides protection so that your customers can be refunded or rebooked. This means your obligations are fulfilled, your reputation protected, and your business continuity maintained.
Why choose TMU for Supplier Failure Insurance?
We specialise in the travel industry and understand the complexities of supply chains. Our bespoke approach ensures your cover is relevant, precise, and built around the realities of your business.

Get Supplier Failure Insurance for Your Travel Business

If you need insurance that’s built around how your business really works, TMU Management is ready to help. Our team will explore your supplier network, assess your risk exposure, and design a bespoke solution that safeguards your customers and your operations.
Contact us