#trip cancellation insurance
Trip Cancellation Coverage
This coverage reimburses up to 100% of your pre-paid, non refundable travel costs when an unforeseen and covered event causes you to cancel your trip.
Let us tell you a story
Rob and Jennifer planned a Colorado ski trip with their two children. They pre-paid for a ski package that included rooms at a lodge right at the base of the lifts. Their ski package also included lessons for the kids and lift tickets for the parents.
Just four days prior to departure, the kids woke with high fevers and sore, scratchy throats. A trip to their pediatrician revealed they had strep and canceling the trip was recommended by the doctor.
With trip cancellation coverage on their travel insurance policy, Rob and Jennifer were able to recover their pre-paid non refundable costs – even the lift tickets. They could take the kids skiing another time.
What does Trip Cancellation cover?
Trip cancellation is pre-departure coverage that reimburses you (up to the covered amount) for pre-paid non refundable trip costs if you have to cancel your trip for a covered reason. This benefit also pays the additional cost in the per person rates (known as a single supplement fee) if a traveling companion s covered trip is cancelled but yours is not.
While each plan defines what its trip cancellation benefit covers, the following are common reasons for trip cancellations:
- Injury or illness – An injury or illness of you, your destination host, your traveling companion, a family member, or business partner.
- Weather or natural disaster – A natural disaster destroys your destination, your intended destination accommodations, or your own home.
- Hurricane A hurricane destroys your home or your destination prior to your departure.
- Schedule conflicts – Schedule issues may include jury duty, court summons, or school year extensions.
- Traffic Accidents – You or your traveling companion are in a traffic accident en route to your scheduled departure.
- Property damage – Your home, your business, or your destination accommodations are vandalized, burglarized, or damaged through criminal acts.
- Terrorism or mandatory evacuations – A terrorist event that occurs at your destination and results in mandatory evacuations.
- Bankruptcy or financial default – A pre-paid travel supplier completely ceases all operations due to financial default or bankruptcy.
- Assaults You or your traveling companion are a victim of a felonious assault prior to your scheduled departure.
- Work conflicts – You or your traveling companion are terminated, required to transfer to a new work location, or in the military and deployed to help with disaster relief. (An optional upgrade, cancel for work reasons . provides coverage for additional employment conflicts.)
- Illness or Death of host – Hospitalization or death of your destination host.
- Labor strikes Your travel is disrupted or flights are cancelled due to an unannounced labor strike.
- Theft or loss of passport/visa You cannot travel because your passport or visa has been lost or stolen.
This benefit is distinctly different from trip interruption coverage. which goes into effect after a traveler has started his or her trip.
What’s NOT Covered?
The trip cancellation coverage of any travel insurance policy covers the unforeseen events that are listed in the policy. This also means that if the plan doesn’t list the event, then cancellation for that reason won’t be covered.
Trip cancellation coverage will never cover a traveler for:
- Canceling a trip where the purpose of which is to obtain medical treatment.
- Canceling a trip for routine medical treatment for an existing medical condition.
- Canceling a trip because the traveler feels that taking the trip would be unsafe.
- Canceling a trip because the weather is not agreeable.
- Canceling a trip because the traveler decided they couldn’t afford the expense.
- Canceling a trip due to mental or psychological disorders, including anxiety, depression, and more.
- Canceling a trip because the traveler had a change of heart.
- Canceling a trip due to pregnancy, child birth, or an elective abortion other than medical complications of pregnancy that threaten the life of mother or child.
- Canceling a trip due to a government regulation or prohibition.
- Canceling a student trip because the school board canceled the trip.
- Canceling a trip due to civil riots at your destination.
- Canceling a trip due to alcohol or substance abuse.
- Canceling a trip due to mental illness or panic attacks.
- Canceling a trip due to unlawful acts committed by the insured, their traveling companion, or a family member, whether insured or not.
- Canceling a trip due to an intentionally self-inflicted injury, suicide, or attempted suicide of the insured, their traveling companion, or a family member, whether insured or not.
It’s important to note, however, that adding the ‘cancel for any reason’ option to your travel insurance plan will help in these situations.
Some exclusions can be waived by adding options to your travel insurance policy:
- Canceling a trip due to a pre-existing medical condition.
- Canceling a trip due to travel supplier financial default.
- Canceling a trip because you are required to work. *
* Some plans include cancellations for work reasons benefits in their plans. Specifically, Travel Guard’s Platinum and Gold plans include this benefit automatically. Other plans have ‘cancel for work reasons’ as an option that can be added.
Important notes about this coverage
- The effective date for trip cancellation coverage begins at 12:01 a.m. the day after the premium is paid.
- This coverage ends at the earliest of either: the cancellation of your trip, or the date and time you start your trip
- You must notify the travel suppliers and the plan provider of your intent to cancel prior to trip departure (unless you are incapable of doing so).
What type of policy covers this?
Almost all package plans include some coverage for trip cancellations, but what the coverage covers varies from plan to plan.