If a customer has booked flights separately from their holiday package and the airline they are due to fly with, goes out of business before they fly, the money they've paid might not be covered by standard travel insurance. However, there is a type of specialist cover called Scheduled Airline Failure Insurance or Safi, for short, which gives protection against this happening. Most of our TIF, Aggregator and GTG policies include Scheduled Airline Failure but they DO NOT cover End Supplier Failure.
If the policy includes Scheduled Airline Failure, TIF will cover for the cost of the flight booked, if the airline stops trading, as long as the flight is booked independently through a licensed or bonded travel organiser, or direct with the airline in the UK, and is NOT part of an inclusive trip or holiday package.
ESF is Any claim that is due to any failure (including financial) of your travel agent or tour operator, any transport or accommodation provider, their agent or anybody who is acting as your agent, unless specified, which is NOT covered.
To read information about how much Scheduled Airline Failure is included in our TIF policies, please refer to pages 28-30 approx and for our Aggregator policies, please refer to page 13 approx, that mentions it as "if your scheduled airlines stops trading."
This document also has a breakdown of how much Safi cover is on each of our policies: https://docs.google.com/document/d/1w-xmqf99hFr3HF4bz7ozYkn0Hbz2zxNKzKC2jykw6_g/edit?ts=5e626d1a