Search Travel Market Report

mainlogo
www.travelmarketreport.com
  • News
  • Tours & Packages
  • Cruise
  • Hotels & Resorts
  • Destinations
  • Retail Strategies
  • Niche & Luxury
  • Well-Being Travel
  • Training & Events
  • Who We Are
    • Anne Marie Moebes
    • Brian Israel
    • Dan McCarthy
    • Denise Caiazzo
    • Marilee Crocker
    • Paul M. Ruden
    • Dori Saltzman
    • Kelly Fontenelle

Travel Insurance Only Covers Some Coronavirus Cancellations

by Richard D'Ambrosio / February 04, 2020
Travel Insurance Only Covers Some Coronavirus Cancellations

Travel insurance will only cover some coronavirus cancellations. Photo: Shutterstock.com. 


Coronavirus fears are rising, causing many travelers to reconsider their travel plans. But insurance companies and others are warning consumers to check their insurance policies before making a decision to cancel a trip. Otherwise, they could be out any nonrefundable deposits or final payments.

Squaremouth, an online travel insurance aggregator, said it has received “an influx of calls from current policyholders wanting to cancel trips to affected destinations, as well as travelers now wanting to purchase a travel insurance policy.”

In one recent incident, a Hawaii family lost $32,000 on a Norwegian Cruise Line trip to Asia booked through Costco, after they decided to cancel due to coronavirus concerns. Their cruise insurance, not purchased through Squaremouth, didn’t cover their decision.

Pua Morrison, from Maui, said eight family members paid about $4,000 each for the NCL cruise, which has a scheduled stop in Hong Kong. The trip was booked in February 2019, but even though NCL isn’t canceling the stop in Hong Kong, news reports of mounting cases and deaths led the family to cancel in late January. When they called Costco, the Morrisons were referred to NCL, who informed them that their decision to cancel wasn’t covered by the travel insurance policy they had purchased.

"Rather than put myself through all that headache, and most of all the risk of getting this virus, I just want to be able to cancel my cruise and get my refund. That's all I ask," Morrison told a Honolulu television station. "And I don't think that's a lot to ask with what's going on. And it's getting worse every day."

Related Articles

Travel Agents and Industry Executives Respond to Coronavirus Concerns
 

“Fear of traveling due to coronavirus is not a covered reason to cancel a trip on a typical comprehensive travel insurance plan,” InsureMyTrip said in a recent media statement. “Unfortunately, there is limited cancellation coverage under most standard travel insurance policies,” Squaremouth agreed in a similar statement issued to respond to rising inquiries.

“Virus outbreaks do not fall under the standard cancellation reasons on most travel insurance policies. While travelers are advised not to visit affected destinations, they are not prevented from doing so. In simple terms, travel insurance cancellation benefits are designed to reimburse travelers who are prevented from traveling due to a specific list of reasons, like weather or an illness,” Squaremouth said.

Additionally, Squaremouth said, if travelers missed out on popular tourist attractions — like the Great Wall of China, Hong Kong Disneyland and Shanghai Disneyland – closed to help prevent further exposure to the virus, “it isn’t enough to trigger cancellation benefits.”

Any travelers looking to purchase insurance protection now may need upgraded coverage, Squaremouth said. “Any time an event becomes expected and commonly known about, insurance providers can restrict coverage for that event. Some travel insurance providers are now excluding the coronavirus outright, meaning there are no cancellation or medical benefits available for policies purchased after their defined “cut-off date.” According to Squaremouth, this is as early as Jan. 21, depending on the provider.

A few options
However, consumers do have some options, including policies with Cancel For Any Reason (CFAR) coverage. There are eligibility requirements and reimbursement is typically up to 75% of pre-paid, nonrefundable trip cost, InsureMyTrip noted.

"Travelers can certainly contact a licensed travel insurance agent for guidance. However, there may now be very limited options for those who have not purchased a plan, especially if Cancel For Any Reason is no longer an available option," said InsureMyTrip Product Manager Meghan Walch. The Cancel For Any Reason benefit must be purchased within 14 to 21 days of your initial trip payment.

InsureMyTrip also offers a nationwide travel insurance plan that provides coverage in the event the Centers for Disease Control and Prevention (CDC) issues a travel warning to a destination. Travelers who had purchased a policy with CFAR before the outbreak or before the warning was announced, “would likely be able to cancel your trip to Hubei Province in China and get your pre-paid, non-returnable expenses returned,” InsureMyTrip said.

Travelers still planning their trips, or who booked within the past three weeks, may be able to purchase a policy with the Cancel for Any Reason upgrade, Squaremouth said. “While this time-sensitive benefit only reimburses a portion of the trip cost, it is the best option for travelers who have concerns that a standard policy doesn’t cover, including fear of traveling.”

Squaremouth noted that “if a policyholder contracts the virus before their departure, they may be covered to cancel their trip entirely under a standard policy. In addition, if a traveler falls ill with the coronavirus while on their trip, they can be refunded for medical expenses and, if medically necessary, be covered to end their trip early and return home.”

Squaremouth recently launched the China - Coronavirus Outbreak Travel Insurance Information Center to explain coverage for the virus outbreak. This page is regularly updated by Squaremouth’s travel insurance experts, and includes answers to frequently asked questions and official statements from providers.

  2
  0

MOST VIEWED

Brought To You By
  1. A&K Purchases Crystal Ships, Revives Crystal Cruises Brand
  2. CDC Adds Three Caribbean Destinations to “High-Risk” COVID-19 List
  3. Travel to Italy Is Officially Back to Normal
  4. Viking Drops Onboard & Pre-Cruise COVID-19 Testing
  5. Three Cruise Lines Bring Masks Back in Alaska
  6. How Travel Advisors Can Cope With Chaos in Air Travel

MOST EMAILED

Brought To You By
  1. Travel to Italy Is Officially Back to Normal
  2. Report: U.S. to End COVID-19 Air Travel Testing Requirement
  3. A&K Purchases Crystal Ships, Revives Crystal Cruises Brand
  4. Japan Could Boot Tourists Who Disobey COVID-19 Rules
  5. Viking Drops Onboard & Pre-Cruise COVID-19 Testing
  6. Bahamas Eliminates Travel Health Visa, But COVID Test Requirement Remains
rental escapes
TMR Subscription

Subscribe today to receive daily in-depth coverage, analysis of industry news, trends and issues that affect how you do business. Subscribe now for free.

Subscribe to TMR

TMR Recommendations
Daniel Zim
Zim Travel Law, PLLC. Demystifying Complexity with Down to Earth Advice. Attorney Advertising.
hbar
Rodney Gould
Rodney E. Gould concentrates in travel and tour-operator litigation and regularly counsels travel-related entities worldwide.
hbar
Tom Carpenter
Carpenter Law Office - Representing clients in the travel and tourism industries. Attorney Advertising.
hbar
Top Stories
Staffing Remains the Biggest Issue for the Travel Industry
Staffing Remains the Biggest Issue for the Travel Industry

Almost every single service sector worldwide is struggling with staffing issues and the travel industry is no exception.

Read...
Marketing, Engagement, & Partnerships Lead Discussions as TMP East Opens
Marketing, Engagement, & Partnerships Lead Discussions as TMP East Opens

The two-day conference provides attendees a packed schedule of general sessions, TED-style talks, panel discussions, a packed trade show floor and more.

Read...
U.S. Travel Association Names Roger Dow’s Successor in Geoff Freeman
U.S. Travel Association Names Roger Dow’s Successor in Geoff Freeman

Freeman will take the reins on Sept 1, taking over for Dow who is wrapping up a 17-year tenure as U.S. Travel’s leader. 

Read...
Legislative Day 2022: Two Big Priorities for ASTA’s ‘Most Significant Day’
Legislative Day 2022: Two Big Priorities for ASTA’s ‘Most Significant Day’

More than 230 travel advisors from 47 states came to D.C. for this year’s Legislative Day, just three states shy of its 50-state goal. 

Read...
What to Know About Shipping Luggage Ahead of Travel
What to Know About Shipping Luggage Ahead of Travel

Shipping luggage is safe and reliable, but there are some things to avoid. 

Read...
Despite Inflation and Rising Costs, Travel Is Still Top-of-Mind for U.S. Consumers
Despite Inflation and Rising Costs, Travel Is Still Top-of-Mind for U.S. Consumers

New survey data from ASTA saw that consumers are still preparing to travel despite the rising cost. 

Read...
TMR OUTLOOKS & WHITE PAPERS
CP White Paper
Multi-Gen Outlook
Distribution Outlook (1)
New to Cruise Outlook
Expedition 2020
River Cruise Outlook 2019
View All
Advertiser's Voice
https://img.youtube.com/vi/QTPIinGDcIY/0.jpg
Video: Can Booking Bachelor and Bachelorette Party Groups Be Profitable for Advisors?
About Travel Market Report Mission Editorial Staff Advisory Board Advertise
TMR Resources Webinars Calendar of Events
Subscribe to TMR
Select Language
Do You Have an Idea Email
editor@travelmarketreport.com
Give Us a Call
1-(516) 730-3097
Drop Us a Note
Travel Market Report
71 Audrey Ave, Oyster Bay, NY 11771
News|Leisure Travel|Land Vacations|Cruise|Canada Retail Strategies|Well-Being|Luxury|Training
© 2005 - 2022 Travel Market Report, an American Marketing Group Inc. Company All Rights Reserved | 243 South Street, Oyster Bay, NY, 11771 USA | Telephone (516) 730-3097| Terms and Conditions
Cookie Policy Privacy Policy