Due to the uncertainty caused by the spread of COVID-19, many Canadians hoping to travel this year have concerns. You may be wondering how travel insurance might respond to cancellations for reasons related to the virus.
It is important for travellers to be aware that under standard trip cancellation policies, there is no coverage for cancellation costs due to fear of contracting COVID-19.
If you are looking to book a trip and want to be covered in this scenario, consider adding the 'Cancel for Any Reason' option under your trip cancellation policy.
Through our partners at TuGo, you can be reimbursed up to 50% of your pre-paid, non-refundable travel costs (as long as you cancel at least 10 days before the departure date).
You also have a 10-day window after booking your trip to secure this coverage.
Below are examples of situations that illustrate how a policy with 'Cancel for Any Reason' would respond compared to a standard trip cancellation policy.
EXAMPLE #1
You have a cruise and airline tickets booked and you purchased trip cancellation insurance within 10 days of booking. Although no travel advisory has been issued for your cruise destination, the cruise line has cancelled as a precaution and refunded the cost. Now, what about those airline tickets?
| STANDARD POLICY | CANCEL FOR ANY REASON |
|---|---|
| There is no coverage as a travel advisory was not in effect. | You would be reimbursed 50% of your airline ticket cost (if you cancel more than 10 days before departure). |
EXAMPLE #2
You've booked a trip and an outbreak arises in your destination country. No travel advisory has been issued. You buy a trip cancellation policy now just in case. You cancel your trip one week before your departure date to avoid the risk.
| STANDARD POLICY | CANCEL FOR ANY REASON |
|---|---|
| There is no coverage as a travel advisory was not in effect. | You would be reimbursed 50% of your prepaid, non-refundable travel costs (if you purchased the policy within 10 days of booking your trip and cancel at least 10 days before departure). |
EXAMPLE #3
You've booked a trip and an outbreak arises in your destination country. No travel advisory has been issued. You buy a trip cancellation policy now just in case. You cancel your trip before your departure date to avoid the risk. One day before your original departure date, an "avoid travel" advisory is issued by the Government of Canada.
| STANDARD POLICY | CANCEL FOR ANY REASON |
|---|---|
| There is no coverage as a travel advisory was not in effect at the time you cancelled. | You would be reimbursed 50% of your prepaid, non-refundable travel costs (if you purchased the policy within 10 days of booking your trip and cancel at least 10 days before departure). |
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