Travel insurance for the pandemic
Before booking a flight, there are some critical points travelers should consider in purchasing or opting out of travel insurance.
As travelers return to the skies after many months of stunted travel, albeit in small numbers, passengers who are choosing to travel are purchasing travel insurance more than ever, according to experts at USI.
With all of the complications the COVID-19 pandemic has caused, travel insurance has its own, as airlines finagle steep profit losses and plummeting passenger totals.
Before booking a flight, there are some critical points travelers should consider in purchasing or opting out of travel insurance, and what policy options they may need in order to cover coronavirus-related risks.
COVID-related insurance provisions
Karen Johnson, leader and head of Travel Insurance Services at USI Affinity, advises that travelers first take a close look at the policy exclusions before purchasing.
“One of the things that people should review before they purchase a plan is what the exclusions can be, namely exclusions such as the epidemic or pandemic exclusions, which will really limit any kind of coverage that travelers could have under a plan,” Johnson said.
For example, if the destination that you’re traveling to is requiring you to quarantine for a period of time upon entry, you could be eligible for trip cancellation coverage, Johnson adds. There is a caveat, however.
The caveat is provided that the quarantine has been in effect within 14 days of the scheduled departure date, and travelers must cancel the trip during these two weeks.
If policyholders are having second thoughts about traveling for safety reasons, travel insurance would not cover fear of traveling for any reason, Johnson said. Travel insurance providers have a list of standard reasons that qualify for cancellation, including car accident, jury duty, terrorist act, military duty and other extenuating circumstances.
Travelers looking for more flexibility in their insurance coverage should consider ‘cancel for any reason’ or CFAR coverage. This supplemental upgrade is offered on some travel insurance plans and can cover up to 75% of a non-refundable deposit as long as the trip is canceled at least two days prior to the scheduled departure date.
Johnson advises CFAR coverage would be the only benefit that would cover fear of traveling as a reason for cancellation.
Cancellation due to infection
If policyholders or their family members become infected with COVID either before or during their trip, most travel insurance policies would not cover cancellation costs.
“It doesn’t matter if it’s COVID or a heart attack , our plans are covering it the same way. We are not excluding COVID, we’re treating it like any other sickness,” Johnson said.
“Likewise, let’s say you were already on the trip, and someone gets sick from COVID, we’re treating it like any other sickness,” Johnson added. “That also goes for our emergency medical coverage and our emergency medical evacuation coverages, as well.”
With the risk of infection still very present, travelers should explore policy options and consider any new risks at hand to ensure their trip and their wallet are properly protected.
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