Is travel agency insolvency covered?

Currently, Australian travel insurers do not cover travel agency insolvency. But for most of the time, that should be okay since travel agencies don't usually operate the flights or hotels anyway.

How can people protect themselves against bankruptcy?

If a provider such as a tour operator or airline becomes insolvent, there are several ways you may be able to recover your money. The travel agent may be able to get a refund for you, or at least help you get home if you’re stranded mid-holiday If you paid for your holiday on your credit card, you may be able to request a chargeback from your credit card provider and have the money returned to your credit card If your travel insurance policy includes insolvency of a travel provider, you will be covered up to a certain benefit amount However, there are no travel insurance policies that provide cover if your travel agent becomes insolvent. The only way to recover your money is by requesting a chargeback from your credit card company or being compensated through your travel agent’s insolvency cover.