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Insolvency cover for package travel organisers in Germany

Package travel organisers take customers' money long before the trip happens. German law therefore requires that deposits and travel prices are protected against the organiser's own insolvency, and the traveller receives a security certificate, the Sicherungsschein, as proof. Since November 2021 large organisers have had to use the German travel security fund, while smaller ones may still choose an insurer. Which route works for you depends mainly on turnover and creditworthiness.

The question almost everyone asks first

Does a small tour operator in Germany have to join the travel security fund?

No. The Deutscher Reisesicherungsfonds (DRSF) is mandatory only from 10 million euros of package travel turnover in the last financial year. Below that you may choose the fund, an insurer or a bank. If your turnover was under 3 million euros, an insurer may cap its liability at 1 million euros per insolvency (section 651r(3) of the German Civil Code). Without any protection you may not take customer payments before the end of the trip.

Who is protected, and how

The cover protects the traveller, not the organiser. If a trip falls through because the organiser cannot pay, travellers get their payments back. If they are already away and transport is part of the package, their journey home is arranged as well. The protector pays the traveller directly rather than through the insolvency administrator.

For the organiser, the contract works much like credit: the insurer takes on the risk of you failing. That is why it reviews your accounts, liquidity and booking pattern before agreeing, and sets sum and premium on that basis.

The fund or an insurer

The German travel security fund started in November 2021. Organisers with at least 10 million euros of turnover must use it, smaller ones may. The fund charges a fee on the turnover it protects, 1 percent at launch and 0.5 percent since 1 November 2025, plus a security deposit that depends on creditworthiness. Banks or surety insurers provide that deposit as a guarantee.

Below 10 million euros, classic customer money protection with an insurer remains available, but the market is narrow. After HDI withdrew at the end of 2020, the trade press counted three remaining insurers in 2021, so it pays to find out early who will accept your business.

Deposits and final payments

You may only ask for payment before the end of the trip once the traveller has the Sicherungsschein. The amount follows case law: in its judgment of 9 December 2014 (X ZR 85/12) the Federal Court of Justice held that a 20 percent deposit at booking is generally acceptable, higher deposits need a reason, and requiring the balance earlier than 30 days before departure is invalid. Many protectors write these limits into the contract.

What changed after Thomas Cook

Until 2021, customer money protectors could cap their total liability at 110 million euros a year. That cap proved far too low when Thomas Cook collapsed in 2019, with Zurich as the protector. The legislator removed it and created the fund for large organisers. Only the 1 million euro cap for organisers under 3 million euros of turnover remains.

What is covered

  • Refund of deposits and final payments when a trip is cancelled because of insolvency
  • Repatriation when transport is part of the package
  • Accommodation until the journey home
  • Amounts that hotels or other suppliers demand again because of the insolvency
  • Payments made to a travel agency collecting on the organiser's behalf
  • Linked travel arrangements under section 651w BGB, where agreed
  • Issue of security certificates by the protector

What is not covered

  • Defects, cancellations and delays without insolvency
  • Insolvency of a supplier such as an airline or hotel
  • Loss of holiday enjoyment and other consequential loss
  • Deposits above the contractually permitted amount
  • The organiser's own losses
  • Payments made without a Sicherungsschein having been handed over

Who needs it

  • Tour operators selling package holidays, even as a sideline
  • Travel agencies putting together their own flight and hotel packages
  • Coach operators, language travel providers and group tour organisers
  • Businesses facilitating linked travel arrangements and taking customer money
  • Start ups that need a protector before they have any accounts

Who does not need it

  • Agencies that only sell other organisers' packages and keep no customer money
  • Providers of single services such as accommodation or car hire that do not form a package

Wheel of misfortune

Spin the wheel of bad luck

Six things that really happen. The wheel picks yours and shows who pays.

See all six cases
  1. Organiser fails before the season, all customer deposits. Budget policy: pays, Strong policy: pays. The core case. Travellers get their money back from the protector, not from the insolvency estate.
  2. Guests stranded at the resort, flights home and hotel for the group. Budget policy: pays, Strong policy: pays. If transport is part of the package, the protector arranges and pays for the journey home and accommodation until then.
  3. Hotel demands payment again, the hotel bill per guest. Budget policy: pays in part, Strong policy: pays. Amounts suppliers demand again because of the insolvency must be refunded. Good contracts say so expressly.
  4. Claims exceed 1 million euros, the part above the cap. Budget policy: does not pay, Strong policy: pays. For organisers under 3 million euros of turnover the insurer may cap. Claims are then reduced pro rata. Without a cap they are paid in full.
  5. Customer paid a 50 percent deposit, the part above the permitted deposit. Budget policy: does not pay, Strong policy: pays in part. Contracts often exclude excessive or early payments, which leads to disputes over who bears the rest.
  6. Airline fails, organiser does not, new flights for every guest. Budget policy: does not pay, Strong policy: does not pay. Customer money protection only responds to your own insolvency. You still owe the customer a replacement flight.

What it costs

Insurers price the cover on protected turnover and creditworthiness, often with fees per certificate on top. There are no independent price comparisons. The only published benchmark is the fund's fee of 0.5 percent of protected turnover since 1 November 2025, plus its security deposit.

What drives the premium

  • Package travel turnover last year and planned
  • Creditworthiness, equity and liquidity
  • Size and timing of deposits and final payments
  • Seasonality, meaning how much customer money is held at once
  • Type of trips and share of own charter flights
  • Collateral required, such as guarantees or deposits

Whether an insurer will write the risk, and on what terms, is only clear after its credit review. Start ups without accounts should allow extra time.

The policy levels on the market

01

Insurance with liability cap

For organisers under 3 million euros of turnover: the insurer may cap at 1 million euros per insolvency. Lean review, certificates to download.

02

Insurance without cap

For organisers between 3 and 10 million euros of turnover: full refunds for all travellers, deeper review, often with turnover reports during the year.

03

Travel security fund

Mandatory from 10 million euros, optional below. Fee on turnover plus a security deposit provided as a bank or surety guarantee.

How to recognise a good policy

CriterionMinimum standardStrong policyWhy it matters
Liability cap 1 million euros per insolvency where allowed no cap If the sum runs short, every traveller gets only part of the money back.
Linked travel arrangements not included expressly covered Taking customer money for linked arrangements also requires protection.
Payments to travel agencies only payments made directly to the organiser agency collection counts as payment to the organiser Many customers pay the agency, not the organiser.
Vouchers not addressed the organiser's travel vouchers are protected Vouchers are customer money you already hold.
Collateral guarantee or cash deposit required little or no collateral Tied up collateral is missing from your cash flow.
Insurer termination at any time if credit quality drops long notice and run off for certificates already issued Without a new protector you may not take payments.
Fees per certificate a fee for every certificate included in the premium With many small bookings the fees add up.

Insurers on the German market

The market is very small. The trade press listed three insurers in 2021 after HDI withdrew at the end of 2020. The travel security fund is not an insurer and is therefore not listed, nor are Allianz Trade and other surety writers that operate as branches of foreign companies outside German federal supervision. This is a market overview, not a statement about who we work with.

InsurerBackground
R+Vsurety cover for tour operators with security certificates, including small organisers
Zurichtravel price protection through its surety business, plus guarantees for the security deposit at the travel security fund
HanseMerkur via TourVerscustomer money protection through the agency TourVers, with HanseMerkur Reiseversicherung as risk carrier
VHVsurety insurer focused on construction; guarantees for tour operators are not advertised and are checked case by case
Gothaersurety insurer since 2023; an offer for tour operators is not advertised and is checked case by case

From the BaFin register

26

26 insurers supervised by BaFin, the German regulator, are licensed for this class of insurance.

(Kredit, allgemeine Zahlungsunfähigkeit)

Show all 26 names from the register
  • Allianz Global Corporate & Specialty SE
  • Allianz Versicherungs-Aktiengesellschaft
  • Baloise Sachversicherung Aktiengesellschaft Deutschland
  • Bayerischer Versicherungsverband Versicherungsaktiengesellschaft
  • ERGO Reiseversicherung AG
  • Generali Deutschland Versicherung AG
  • Gothaer Allgemeine Versicherung Aktiengesellschaft
  • Great Lakes Insurance SE
  • HanseMerkur Reiseversicherung AG
  • HDI Global SE
  • HDI Global Specialty SE
  • HDI Versicherung AG
  • Lucura Versicherungs AG
  • Mannheimer Versicherung Aktiengesellschaft
  • Markel Insurance SE
  • Pallas Versicherung Aktiengesellschaft
  • ProTect Versicherung AG
  • Provinzial Nord Brandkasse Aktiengesellschaft
  • Provinzial Versicherung Aktiengesellschaft
  • R+V Allgemeine Versicherung Aktiengesellschaft
  • RheinLand Versicherungs Aktiengesellschaft
  • SIGNAL IDUNA Allgemeine Versicherung Aktiengesellschaft
  • SV SparkassenVersicherung Gebäudeversicherung Aktiengesellschaft
  • Versicherungskammer Bayern Versicherungsanstalt des öffentlichen Rechts
  • VHV Allgemeine Versicherung AG
  • Zurich Insurance Europe AG

Source: BaFin company database, 18 September 2026; EU insurers without a German office excluded.

Legal basis and sources

Products and add-ons

Customer money protection with an insurer

The classic route below 10 million euros: an insurance contract for the benefit of travellers, certificates issued by the insurer.

Protection through the travel security fund

A protection contract with the fund, a fee on turnover and certificates issued by the fund. Mandatory from 10 million euros.

Guarantee for the security deposit

A bank or surety insurer provides the security the fund requires, so it need not be paid in cash.

Bank guarantee

Your bank provides the protection, often backed by a regional guarantee bank. Uses up credit lines.

Professional indemnity for travel agencies

Related line: covers advice and booking errors, not your own insolvency.

Myth or truth

True or false?

Five things people say about this insurance. Guess first, then see the answer.

Since 2021 every German tour operator must join the travel security fund.

This is false.

False. The fund is mandatory only from 10 million euros of turnover. Smaller organisers may still use insurers or banks.

Without a Sicherungsschein I may not take money before the trip.

This is true.

True. Payments towards the travel price before the end of the trip are only allowed once the traveller has the certificate.

The cover also pays if the airline goes bust.

This is false.

No. Only your own insolvency is covered. If a supplier fails, you remain liable to the customer.

For small organisers the insurer may cap its liability.

This is true.

Yes. Under 3 million euros of turnover it may cap at 1 million euros per insolvency. Above that there is no longer any cap.

A 40 percent deposit is normal and unproblematic in Germany.

This is false.

No. In 2014 the Federal Court of Justice struck down a clause requiring 40 percent. More than 20 percent needs a demonstrable reason.

Common mistakes

  • Taking deposits before the customer has the Sicherungsschein
  • Asking for more than 20 percent deposit without a reason and without the protector's agreement
  • Growing past 10 million euros of turnover without moving to the fund in time
  • Looking for a protector just before the season, although the credit review takes weeks
  • Selling flight and hotel bundles without noticing that they form a package

Frequently asked questions

Questions and answers

Frequently asked

What is a Sicherungsschein?

The traveller's proof that payments are protected against the organiser's insolvency.

It names the protector and how to reach it.

You may not ask for payment before the end of the trip until it has been handed over.

When do I have to join the travel security fund?

When your package travel turnover in the last completed financial year reached 10 million euros.

Below that, the fund is optional and you may choose an insurer or a bank instead.

What does the travel security fund cost?

At launch in November 2021 the fee was 1 percent of protected turnover,

and since 1 November 2025 it has been 0.5 percent.

On top comes a security deposit based on creditworthiness,

which the trade press puts at 5 to 9 percent of annual turnover.

What does the 1 million euro cap mean?

If your turnover is under 3 million euros,

the insurer may cap its liability at 1 million euros per insolvency.

If travellers' claims exceed that, they are reduced pro rata.

For small organisers this is usually enough, but you should know it.

How large may a deposit be?

The statute sets no figure.

Under Federal Court of Justice case law, 20 percent at booking is generally acceptable,

more only with an objective reason such as high advance payments of your own.

The balance may be requested no earlier than 30 days before departure.

Does a travel agency need this cover?

Only if you act as organiser by building your own packages,

or if you facilitate linked travel arrangements and take customer money.

Agencies that only sell other organisers' packages rely on that organiser's certificate.

What happens if my insurer terminates?

Certificates already issued stay protected if the contract provides run off cover.

For new bookings you need a new protector at once, otherwise you may not take any further payments.

Can a start up get cover?

Yes,

but without accounts the insurer relies on business plans, equity and the founders' track record.

Expect collateral and a longer lead time.

Why use a broker?

Because the market is small and every protector reviews differently.

We prepare your documents the way insurers want to see them, compare caps, collateral and fees,

and check early whether the fund is cheaper.

The insurer pays our commission.

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