Skiing Holiday Loophole
A major loophole regarding UK travel insurance laws poses a risk to those on skiing holiday and other package trips. The risks of this relatively obscure loophole became evident after the AmTrust Europe insurance company refused to pay claims by families whose children were unable to go on class skiing trips which were canceled.
The package tour provider, Skiing Europe, is asking for government and the insurance industry to change the laws so that this won't happen again. Skiing Europe was insured through AmTrust to provide refunds to customers in the event they had to cancel holidays. The company began canceling class trips which led AmTrust to cancel its policy with the firm, and even triggered a police investigation. The situation has also led to broader fears in the industry that many other travel companies may be relying on insurers that will not pay out in the event of financial difficulty.