More than 70 percent of all cruise passengers buy travel insurance, according to a 2006 consumer survey conducted by the U.S. Travel Insurance Association.
The survey also revealed that people are more likely to buy insurance when there are more factors out of their control, when there are considerable pre-paid, non-refundable expenses, and when they want protection from unforeseen events.
“The most common claim situation is that a sudden illness or injury in the family forces people to cancel a cruise,” said Jon Ansell, USTIA president.
Hurricanes and delays reaching the port of embarkation due to bad weather are also circumstances typically covered by travel insurance, he said.
If a passenger misses a flight to the point of embarkation for a covered reason, the insurance covers the flight costs to the ship's next port of call and reimburses for the portion of the cruise that was missed, Mr. Ansell added.
USTIA spokeswoman Linda Kundell said the last figures available from 2004 showed that $1 billion worth of travel insurance premium was sold that year.
Also that year, 30 percent of cruise and tour travelers took out travel insurance, compared with about 10 percent before the terrorist attacks on the United States on Sept. 11, 2001.
The Arch Insurance Group and the Berkeley Insurance Group are among the major companies underwriting travel policies along with numerous specialty companies.
With the growing popularity of cruising, new travel insurance policies address the special needs of cruise passengers that include standard travel insurance protections, such as trip cancellation/interruption, medical and evacuation coverage, as well as enhancements such as “missed cruise connection.”
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