Travel firm woes highlight importance of flight insurance

For the vast majority of gap year travellers, the adventure begins – and also ends - at the airport.

Flying is the fastest and most practical way of reaching far-flung destinations, and getting on with the important business of sampling other cultures and traditions.

But by nature, round-the-world travel is fairly expensive. Particularly for gap year students who have limited funds to fall back on, plane tickets can account for a fair-sized chunk of the budget.

As such, the recent uncertainty in the airline industry has re-emphasised the need for gap year travellers to fully insure their flights.

The recent collapse of tour operator and travel agency Skyjet, and the ongoing difficulties experienced by Thomas Cook have highlighted the risks passengers face in a troubled economic climate.

With operators forced to contend with falling revenues and rising costs, these are clearly difficult times for the industry as a whole. But customers should not have to pay the price.

Customers need to take all necessary precautions to limit personal loss, in the unfortunate event that their travel operator or airline does go bust.

As the Telegraph's Oliver Smith explained, air passengers – whether they are going away on holiday, on business or on a gap year – are covered provided their operator has an Air Tour Operators Licence (ATOL) issued by the Civil Aviation Authority (CAA).

All gap year organisations which book flights for participants are required by law to have an ATOL, but people making their own travel arrangements may not receive the necessary assurance.

"ATOL licenses are not issued to airlines," Mr Smith noted. "So if you booked directly with your airline, you will not be covered by the ATOL scheme."

And in this situation, it is crucial for individuals to take out the insurance necessary to ensure they are not left grounded at the airport.

Should an operator cease trading while you are away on a holiday or gap year, the CAA will work to ensure the trip is not interrupted, Mr Smith advised.

The CAA aims to fly people back home as close to their planned departure date as possible, he explained, meaning they should head to the airport as normal unless instructed otherwise.

"It's unlikely you'll be flown back earlier, but your return may be delayed. In this situation, additional, reasonable costs for accommodation, meals and transports will be reimbursed – but keep your receipts," he added.

Clearly, people heading off on a gap year need to take all necessary precautions as part of their gap year planning.

But as the Telegraph's travel expert Nick Trend explains, insurance is not always just about the money - it is also about avoiding unnecessary stress and worry.

For more information on gap year planning.