According to a recent report released by the U.S. Travel Association and Oxford Economics, the COVID-19 pandemic will likely cause the travel industry to suffer financial losses nine times worse than 9/11. Yikes!
Due to this uncertainty, bankruptcy and financial default coverage is an increasing concern for travelers. No one wants to lose out on a trip they won’t be able to take because the travel supplier tanked. Below are the top two questions our team of friendly humans have been asked more frequently about travel insurance.
If my travel supplier goes bankrupt, will I recoup my trip expenses?
Like all other travel insurance benefits, you must meet the requirements of travel insurance to qualify for coverage. Bankruptcy travel insurance is a game-changer if you’re worried your travel supplier has a chance of going out of business. Most travel insurance policies that insure bankruptcy, financial default or financial insolvency as a covered event under trip cancellation require the bankruptcy or financial default to occur at least 10 days after the effective date of the policy.
Another important thing to note is that the company declaring bankruptcy must be your “travel supplier”. This is often defined as a tour operator, cruise line or airline that has provided some type of travel service for your trip. A travel agency would likely not qualify as a travel supplier as they are not directly responsible for providing the land, air or sea transportation services.
However, if you meet the requirements stated in your policy terms to receive bankruptcy benefits, you could get the unused costs of your trip back. Make sure you have the proper documents to support your claim –without it, your claim could be denied.
Is bankruptcy and/or default coverage included with every travel insurance policy?
“About 80% of the policies we sell on Yonder include or offer some form of bankruptcy or financial default insurance,” says Terry Boynton, president and co-founder of Yonder. “It’s important to remember that half of those policies are only available to purchase within a specific time frame from your initial trip deposit or payment date.” Even more reason why to purchase travel insurance after making your initial deposit or trip payment.
To compare travel insurance policies with this specific type of benefit, simply run an instant quote and select the filter displayed below.
Our team of friendly humans would be happy to help you find a policy with bankruptcy insurance so you can plan your trip with peace of mind. Give us a call or shoot us an email to walk through which travel insurance plan has the bankruptcy benefits you need.
Travel insurance policy terms are very clear on what benefits will be reimbursed and under what circumstances. If you meet the requirements of the policy, bankruptcy travel insurance could end up helping recoup your trip investment.