No one wants to face the disappointment of losing out on a trip due to a travel supplier going under. Protecting your trip expenses with bankruptcy travel insurance could set your mind at ease.
Since the onset of the COVID-19 pandemic, more travelers have become aware that numerous travel suppliers have been significantly impacted by such events, with some facing financial insolvency. This could cause your trip to be cancelled or interrupted, neither desired when you’ve been looking forward to your trip.
As travel continues to ebb and flow, it’s important to protect against the travel companies you book with going under financially. Here’s how trip cancellation could help if your cruise, airline, or tour operator experiences financial insolvency.
What is financial insolvency trip cancellation and trip interruption coverage?
It’s a covered trip cancellation and trip interruption benefit included with some travel insurance policies. Bankruptcy travel insurance safeguards your trip investment. It can reimburse your insured trip expenses in the event of trip cancellation or interruption caused by a supplier’s default. Be sure to check the policy wording or certificates to see if this benefit is included. You can learn more about trip cancellation coverage on our Travel Insurance FAQs page.
If you’re worried about the companies you booked travel arrangements with, it’s best to buy a plan that includes this benefit. It can be helpful to check the financial stability of your cruise line, airline, or tour operator via the AM Best Rating Scale.
If my travel supplier goes bankrupt, will I recoup my trip expenses?
Like all other travel insurance benefits, you must meet the requirements to qualify for coverage. Bankruptcy travel insurance coverage can make a significant difference if you’re concerned your travel supplier may go out of business. Most policies covering financial insolvency or default as a trip cancellation event require the bankruptcy or default to occur at least 10 days after the policy’s effective date.
Another important thing to note is that the company declaring financial insolvency 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 count as a travel supplier as they only assist in booking land, air, or sea transportation services.
However, if you meet the requirements stated in your policy terms to receive financial insolvency benefits, you could get the unused costs of your trip reimbursed. Make sure you have the proper documents to support your claim –without it, your claim could be denied.
Is bankruptcy travel insurance easy to find?
“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. “Half of those policies are only available for purchase within a specific time frame from your initial trip payment date.”
Even more reason why to purchase travel insurance after making your initial trip payment.
To compare policies with bankruptcy travel insurance, simply run an instant quote and select the filter displayed below.
Our friendly team can help you find a policy with bankruptcy travel insurance for worry-free trip planning. Give us a call or shoot us an email to walk through which travel insurance plan has the financial insolvency benefits you need.
Travel insurance terms clearly outline the benefits that will be reimbursed and the circumstances under which they apply. If you meet the requirements of the policy, financial default coverage could end up helping recoup your trip investment.
As a seasoned professional with over five years of experience in the travel insurance industry, Meagan has honed her expertise in marketing and operations working for Yonder Travel Insurance.
Throughout her career, she's shown dedication assisting customers at every stage of their travel insurance journey, from the initial quote process to navigating the claims process. Her expert understanding of travel insurance equips her to provide unbiased and valuable insights, which help travelers find the best coverage and maximize its benefits.
