Travel Insurance Protection Regarding Novel Coronavirus Risk

For a few months now, Travel Insurance Center^® has been fielding calls from people wanting to know if travel insurance can provide trip cancellation protection from novel coronavirus (COVID-19) risk. Some of these callers even have a trip already scheduled and need to know their options. 

Here Are the Facts

Regarding Standard Comprehensive Travel Protection Plans

Standard comprehensive travel insurance is designed to cover trip cancellation for unforeseen events. COVID-19 became a named event on Jan. 21, 2020 so most callers will not be eligible for COVID-19 travel protection under this type of policy. However, for those that purchase travel protection after Jan. 21, there may be options which apply to the following unforeseen events.

• Emergency Medical Coverage: The client gets sick or hurt during the trip.
• Emergency Medical Evacuation: A sick traveler requires medical transportation to the nearest hospital or a hospital near their home if medically necessary.
• Trip Interruption: A sick or injured traveler cannot continue the trip and must return home.

Standard comprehensive travel protection plans exclude trip cancellation coverage for pandemics, Centers for Disease Control and Prevention warnings, and government-imposed restrictions or regulations. Be sure that your client reads the plan details carefully. Many of the people who have been calling us assumed they had coverage for COVID-19 when in fact, they did not.

Regarding Cancel For Any Reason (CFAR) Plans

A CFAR travel insurance policy is now needed to provide trip cancellation coverage for events related specifically to COVID-19. (CFAR is not available to residents of New York). If the client cancels their trip for any reason under a CFAR provision, benefits will be paid for 75% of the prepaid, forfeited, non-refundable payments or deposits paid for the trip. There are time-sensitive eligibility requirements that must be met to obtain CFAR insurance. These requirements are as follows:

• The policy must be purchased within 21 days of the very first trip payment or deposit. If the client goes beyond that time frame, then CFAR insurance policies are not an option. 
• Clients must insure the full, pre-paid, non-refundable cost of the trip. 
• If a client does cancel for any reason not covered under the standard trip cancellation provisions of the policy, they must do so 48 hours or more before departure.

The Bottom Line

There are a lot of travel deals out there right now for later in 2020 and into 2021. If your clients are taking advantage of these deals and booking these trips, make sure they purchase suitable travel insurance coverage and doing so within all eligibility requirements and time parameters. The client must understand all policy provisions, limitations and restrictions. That way, the policy covers what the clients expect it to cover, and unwanted surprises are averted.

For information on how you can provide travel insurance to your clients, please go to the Insurance Agents and Broker Affiliate Program webpage or call Travel Insurance Center at 1.866.979.6753.