Trip Cancellation/Interruption Insurance in Times of Terror

Terrorism has once again reared its head in Europe, this time bringing Brussels to its knees and putting the city on lockdown. The threat level for the city had been high for some time, and the terrorists once again made good on their threats to wreak destruction and havoc. These attacks have undoubtedly thrown a wrench into innumerable travel plans, and insurance companies and travellers alike will be dealing with thousands of claims for cancelled and interrupted trips.

In light of the many travel disruptions people are no doubt experiencing in the wake of the Brussels attacks, we have produced an article outlining trip cancellation and interruption coverage.

Below are a few points to keep in mind about these insurance products.

 

Sold together, separate coverage

Trip cancellation and trip interruption coverage is sold together and can be purchased as a stand-alone plan or as part of a non-medical or all-inclusive insurance package. However, as their names suggest, they provide separate coverage. Trip cancellation will cover insured risks before the start of the trip, while interruption insurance covers travel risks after the trip has started.

 

As usual, know what you are buying

As is always the case with insurance products, make sure you read the policy wording. No two policies are the same, and you need to understand your coverage. For example, while one particular plan may provide extensive coverage for trips that are cancelled or interrupted due to terrorism-related activities,  other plans may offer only limited coverage, and, in some cases, none. The bottom line: make sure you are aware of all limitations and exclusions.

 

Watch out for government travel advisories

If the Government of Canada issues a travel advisory for your destination before you book your trip to that country, the risk will not be insured because the warning was already in place. However, if you book your trip and the Government of Canada then issues an “Avoid Non-Essential Travel” or “Avoid All Travel” advisory to that country, your trip will be covered should you need to cancel or your travels are disrupted after departure. Trip interruption benefits in the event of a government warning after departure range from extra travel expenses caused by rescheduled or cancelled flights to meals and accommodations in the event of a delayed return home.

 

Want to know more? Read this helpful guide to travel emergencies.

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