In response to the financial issues faced by members following the ‘denied boarding’ disruption caused by the volcanic ash incident, Advantage Financial Services (AFS) has launched a new insurance protection product for operators and agents who dynamically package and business travel management companies (TMCs).

The Travel Disruption Insurance (TDI) is primarily designed to fill a gap in insurance protection afforded to ‘principals’.


Scheduled Airline Failure Insurance and Supplier Failure Insurance protect in the event of an airline or other supplier element of a package failing. However, as demonstrated by the recent volcanic ash cloud any losses caused by force majeure are the responsibility of the principal, who is ultimately liable to their customers for any refunds or replacements.

While TMCs don’t have any direct liabilities to their clients for any pre-paid arrangements, TDI would allow them to provide a guarantee to their clients if they were denied boarding due to force majeure and unable to use or get a refund on their pre-paid elements.

The product has initially been launched to Advantage members but is available to any travel company which carries customer liabilities.

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