It’s happened to all of us. We’ve been planning a great vacation for months, and then right before we’re set to leave, something comes up, and we have to cancel. Or maybe our flight is canceled, or our trip is interrupted for another reason. If this happens, do you know what your options are? Most people don’t realize their travel insurance policy may cover them if their trip is canceled or interrupted. This guide will discuss what Trip Cancellation & Interruption Insurance covers and how it can help you if your trip is canceled or interrupted.
Trip Cancellation & Interruption Insurance
Trip cancellation and interruption coverage are staples in travel insurance, providing peace of mind in case of disruption.
Trip Cancellation Coverage
Trip cancellation insurance covers non-refundable payments and deposits made before your trip is canceled, less any refunds owed. Prepaid accommodations canceled, interrupted, or delayed under a covered reason will be insured.
Be careful of cancellation policies, especially in today’s travel world. Make sure to look for Cancel For Any Reason Travel Insurance.
Trip Interruption Coverage
Prepaid expenses that were not used nor refunded to the traveler are covered under trip interruption coverage and the extra cost of accommodations. Any transportation expenses purchased to get to your destination and the cost of extended stay (hospitalization) are typically covered as well.
What Do Cancellation and Interruption Insurance Cover?
Below are examples that might be covered. Plans vary, so please read your plan when purchasing.
- Health-Related: If the primary traveler or a traveling companion is seriously ill or sick, bodily injury or death the insured, a family member, a travel companion, a business partner, or a child’s caregiver, or if the traveler is involved in a quarantine.
- Death: If the traveler, a traveling companion, or a family member dies before the upcoming covered trip.
- Family Emergency: Coverage could be available if the traveler or your travel companion has a family emergency.
- Theft: Coverage is typically offered if a documented case of theft of your passport or visa.
- Destination’s Environment: If the primary residence or the traveler’s travel destination is rendered uninhabitable due to a natural disaster, fire, vandalism, or burglary.
- Trip and Accommodations Cancellation: If you’re a travel provider or supplier, have canceled all services at least 24 hours before departing, arriving, or making a connection because of a natural disaster, severe weather (i.e. hurricane, snowstorm), or a strike. An evacuation has occurred due to natural disasters or a hurricane warning at your destination.
- Canceled Transportation and Accommodations: If a traveler or traveling companion has been involved in a traffic accident on the way to departing for your trip, including you or your traveling companion need medical attention and/or the care needs to be repaired because it’s unsafe to drive.
- Severe weather has caused a cessation of services provided by your common carrier (airlines, ships, car rental companies) if there has been a mechanical breakdown of the common carrier.
- The travel provider has a default or declared bankruptcy (travel partner, travel retailer, tour operators, travel insurance agent or agency, or a firm from whom your purchased travel arrangements are not included).
- Political Acts of Violence: Insurance plans typically have coverage if a terrorist attack has occurred and/or if the traveler or travel companion has been hijacked
- Work-Related: If the traveler or travel companion has been fired, laid off from their employer after purchasing a travel insurance policy, and if the termination was not the policy owner’s fault, there has been an unannounced strike at the job, or business travelers involved in a merger, loss of a job, or relocation due to your job.
- Military Related: If the traveler serves in the U.S. Armed Forces and has been called to military duty for a natural disaster that has occurred, been reassigned, personal leave revoked, or because of war, the trip will be covered.
- Jury Duty: The traveler is covered if they’ve been summoned for jury duty or subpoenaed to appear in court.
- Extended Travel Delay: If the traveler misses more than half of the total length of your trip, has been delayed.
- Travel Guides: The coverage will refund part or all of your money on all excursions or guides booked on your trip.
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Next Steps
No one wants their hard-earned vacation to be canceled or interrupted, but unfortunately, these things can happen. If you’re worried about your trip being canceled or interrupted, consider purchasing Trip Cancellation & Interruption Insurance. This type of insurance can help reimburse you for non-refundable expenses if your trip is canceled or interrupted. To find the best policy for you, compare rates from different insurers and make sure to read the fine print so that you know exactly what is covered.
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