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Most travel insurance policies do not cover holidaymakers in the event of the tour operator or air carrier shutting down, according to one expert.

Malcolm Tarling from the Association of British Insurers said that although travel insurance covers certain circumstances -for example cancellation following illness, being made redundant or jury duty - this is not the same for cancelled flights.

Credit cards often give some kind of protection, however claiming compensation is often a long and complicated process and may not apply to those stranded abroad.

However, Mr Tarling did have some advice for those wanting to cover themselves.

"It's not easy, but booking by credit card with an ATOL-bonded provider will at least mean that should the worst happen then you will get compensation," he said.

This news comes following the closure of Zoom, a low-cost transatlantic airline which left hundred of passengers stranded at airports after it suspended all flights earlier this year.

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