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Professional Indemnity is there to cover your negligence as a travel agent (for your mistakes basically) – it won’t cover you if you become insolvent.

Now I do not specialise in travel agents, however I used my old pal G Oogle and found the following (http://consumerlaw.gov.au/content/Content.aspx?doc=travel/Travel_FAQ.htm)

…12. What insurance is available to protect my business and customers?

Generally, travel insurance that consumers buy only covers the cost of cancelling or changing any travel arrangements for unforeseen reasons, lost luggage or travel documents, legal bills and overseas emergency medical expenses.

Most insurance policies do not offer protection when consumers’ travel arrangements fail to go ahead as planned because the airline or other end supplier collapsed or became insolvent.

Agents have the option to take out three types of insolvency protection offered by International Passenger Protection (IPP). In Australia, IPP is represented by local insurance broker, Gow-Gates.

IPP’s product range consists of:
##Scheduled Airline Failure Insurance (SAFI), which covers losses arising from the insolvency of an airline
##End Supplier Failure Insurance (ESFI), which covers losses arising from the insolvency of an airline and other end suppliers
##Travel Agent and Intermediary Failure Insurance (TAIFI), which covers the insolvency of the agent or other intermediary.

As well as protecting consumers, these insurance products can also protect agents from the cost of any credit card charge backs obtained by the consumer.

For more information about these insurance products, and which one may be suitable for your business, visit the AFTA website or contact Gow Gates directly on (02) 8267 9999.

From the looks of it, Gow Gates may be the only viable option – is there any reason why you want an option other than theirs?