Strikes and airline collapses are two of the most common causes of disrupted holidays, and two of the most misunderstood in insurance terms. Cover depends on the timing and the wording.
Strikes and industrial action
Many policies cover cancellation or delay caused by strike action, but with an important condition: the strike must not have been announced or known when you bought the policy or booked the trip. If a strike was already announced, claims linked to it are usually excluded. Some policies also only cover strikes after you start travelling.
Typical benefits include delay payments, extra accommodation and costs of abandoning a trip after a long delay. See missed connection and missed departure. Your rights against the airline also apply. See flight cancellations: insurance vs compensation.
Airline collapse (scheduled airline failure)
Standard travel insurance often doesn’t cover the failure of an airline. Some insurers offer scheduled airline failure insurance (SAFI) as an add-on, which can cover the cost of flights you’ve paid for, or the cost of getting home if the airline goes bust while you’re abroad. It’s rarely included as standard, and there are limits.
Other protection if an airline fails
- Package holidays. Your tour operator is responsible, and ATOL protection may apply for flight-inclusive packages from UK sellers. Check your booking for an ATOL certificate.
- Credit card payments. If you paid by credit card and the cost was between £100 and £30,000, you may be able to claim from the card provider under Section 75 of the Consumer Credit Act.
- Debit card payments. Your bank may be able to try a chargeback, though it isn’t a legal right.
See credit card travel insurance for more on card protection.
What to do
- Check the policy for strike and airline failure wording before you buy.
- Buy early. See when to buy travel insurance.
- Pay for flights by credit card where you can.
- Keep proof of what you paid and what you were promised.
- If it happens, contact the airline or operator, your card provider and your insurer.
For other exclusions, see common exclusions.
Frequently asked questions
Does travel insurance cover a strike?
Often only if the strike wasn’t announced when you bought the policy. Check the wording.
Does travel insurance cover airline bankruptcy?
Not as standard. Scheduled airline failure cover is usually an optional add-on.
Is Section 75 protection automatic?
It can apply to credit card purchases between £100 and £30,000, subject to conditions. Check with your card provider.
What is ATOL?
ATOL is a UK scheme that protects many flight-inclusive package holidays. Check your booking documents for an ATOL certificate.
Related travel insurance guides
- Travel Insurance Cancellation Cover: What Reasons Are Accepted?
- What Is Curtailment Cover on Travel Insurance?
- Does Travel Insurance Cover Cancelled Flights Due to FCDO Advice?
- What Does Travel Insurance Cover? A Plain-English UK Guide
- How Much Does Travel Insurance Cost in the UK in 2026?
This article is general information, not financial or insurance advice. Always read the policy documents before you buy.
