21 Feb How PTS Can Help To Insure Your Business
There are two main types of insurance policies that your travel business may require. These are supplier failure insurance and Scheduled Airline Failure Insurance. Supplier failure insurance allows you to pay suppliers in advance of your customers travelling using the customer funds in the trust account. This costs between £1.30 – £2.20 per passenger for customers travelling where the total they have paid into trust is below £1,000.00. Scheduled Airline Failure Insurance allows you to pay for flights in advance of the customer travelling. This cost £1.00 per passenger. This will insure you, the ticket provider, against the insolvency of the airline.
All of our members can rest assured that PTS has an insurance policy in place to allow you to pay suppliers in advance of travel (Supplier Failure Insurance – SFI). This can be up to nine months prior to the trip or tour taking place. Supplier Failure Insurance is calculated on the total that the customer has paid you (this will include your margin) and is priced as below: –
- £0 – £1000 | £1.30 – £2.20 per passenger
- £1001- £2000 | £1.60 – £2.80 per passenger
- £2001 – £3000 | £2.40 – £3.30 per passenger
- £3001 – £4000 | £3.25 – £3.95 per passenger
- Please Note – Bespoke policies can be put in place in the event that you require cover in excess of the above options.
Once you have paid your suppliers in full (this can be either by you paying the suppliers directly and claiming the payment back from the trust account or by paying directly from trust) then you are able to claim your profit on the booking. You can claim your profit on any working day by 11.00 am GMT and your profit will be released directly to your business account within two working days. You will also receive a breakdown of all funds dispersion on the booking, any supplier payments and SFI associated with the booking as well as the total PTS fees and your profit.
PTS also has a policy in place that allows you to pay airlines directly from trust (Scheduled Airline Failure insurance – SAFI) and claim margin at the same time. This means that flight only companies do not have to cash flow consumer funds. In the event that a flight only company or tour operator books a flight and has to book via a credit card, then you can also claim the cost directly from trust. Please see below prices for SAFI: –
- £0.00 – £2000 | £1.00 – £2.00 per passenger
- Please Note – Bespoke policies can be put in place in the event that you require cover in excess of the above options. All prices quoted above are to have +VAT added.
You can also claim profit at the same time you are either paying the supplier or claiming funds that you have paid in advance for a flight. This is done in the same way as above with the SFI.
PTS also works with a broker where they offer Public and Professional Liability cover for companies who are members of Protected Trust Services. PTS members can benefit from a policy that costs from as little as £315.00 +10% IPT (Total £346.50). To obtain this, you must match the following criteria: –
- Turnover less than £300,000
- Less than 250 passengers
- No hazardous activities (for an example; Base Jumping or Ice Climbing)
- Please Note – Bespoke policies can be quoted if required.