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What is Cancellation Travel Insurance?
Cancellation Travel Insurance
Cancellation travel insurance is normally a part of most standard travel insurance policies that provides cover when a trip needs to be cancelled or interrupted due to unforeseen circumstances.
This type of cover is designed to protect travellers from losing money on non-refundable expenses such as flights, accommodations, and other prepaid travel arrangements.
The policy will specify when cancellation can occur, for what reasons and what items are refundable. Special conditions will apply to cruise travel insurance.
Coverage typically includes reimbursement for cancellation or interruption due to various reasons, such as:
- Medical Emergencies: If you or a family member becomes ill or injured and cannot travel.
- Death or Serious Illness of a Family Member: If a close family member passes away or becomes seriously ill, forcing you to cancel or cut short your trip.
- Natural Disasters: Coverage may be provided if your travel plans are disrupted due to natural disasters like hurricanes, earthquakes, or floods.
- Job Loss: Some policies may cover trip cancellations resulting from unexpected job loss or job-related issues.
- Terrorist Incidents or Political Unrest: Coverage for trip cancellations or interruptions due to unforeseen political events or acts of terrorism.
- Jury Duty: If you are required to serve on a jury and it conflicts with your travel plans.
- Travel Supplier Bankruptcy: If a travel supplier, such as an airline or cruise line, goes bankrupt, leading to the cancellation of your trip.
It’s important to carefully review the terms and conditions of any cancellation travel insurance policy, as coverage can vary among providers.
Additionally, there are often specific conditions that must be met for a claim to be valid, so travellers should be aware of these and understand the limitations of their coverage. It’s advisable to purchase travel insurance as soon as you book your trip to ensure maximum coverage.
Trip Disruption
Travel insurance policies will normally provide some benefits relating to a trip disruption occurring as a result of events outside your control as well. The level of benefits and their inclusion does normally depend on the type of insurance policy taken out.
Cover and Benefits can Include
- Cancelling your trip
- Missed departure from country of originating flight
- Delay of Flight
- Having to abandon your flight
- Additional Transport Costs as a result of abandonment
- Cutting short a Trip
- Substitute Accommodation
- Missed Departure of Flights other than Originating Flight
What is Business Travel Insurance?
Business Travel Insurance
Business travel insurance, also known as corporate travel insurance is a type of insurance coverage designed to protect individuals who are travelling for business related purposes.
It provides financial protection against a range of risks and emergencies that can occur during work-related trips.
Business travel insurance is usually purchased by employers or business travellers themselves to lessen the financial impact of unexpected events.
This type of insurance is important for companies that rely on business travel to expand their global presence, as it protects them against major financial losses resulting from unexpected issues during trips.
Business travel insurance premiums are influenced by factors such as the traveller’s age, trip duration, and coverage limits, and typically cost about 6% of the total travel costs.
Here are some key features of business travel insurance:
- Trip Cancellation and Interruption: Covers non-refundable trip expenses in case the business trip is cancelled or interrupted due to covered reasons such as illness, injury, or other unforeseen events.
- Emergency Medical Expenses: Provides coverage for medical expenses incurred due to illness or injury that occurs during the business trip. This may include hospital stays, doctor’s fees, and prescription medications.
- Evacuation and Repatriation: Covers the costs of emergency medical evacuation or repatriation to the home country in the event of a serious illness or injury.
- Travel Delay: Reimburses additional expenses incurred due to unexpected travel delays, such as accommodation and meal costs.
- Baggage and Personal Belongings: Provides coverage for lost, stolen, or damaged luggage and business equipment during the trip.
- Business Equipment Coverage: Extends coverage to business-related equipment and devices that are lost, stolen, or damaged during the trip, such as laptops or other work tools.
- Personal Liability: Offers coverage for legal expenses and damages if the business traveller is held liable for causing injury or damage to the property of others during the trip.
- 24/7 Assistance Services: Many business travel insurance policies include assistance services such as travel assistance hotlines, medical advice, and coordination of emergency services.
Business travel insurance is crucial for protecting both the employer and the employee from unexpected expenses and disruptions that can occur while traveling for work.
The coverage and benefits may vary between insurance providers, so it’s important to carefully review the policy terms and conditions to ensure it aligns with the specific needs of the business traveller and the company’s travel policies.
What are the common exclusions in business travel insurance policies?
Common exclusions in business travel insurance policies include:
- Self-inflicted injuries: Travel policies exclude coverage for any injuries caused to the policyholders due to self-harm, including suicide.
- Illegal activities: Losses caused by illegal activities, such as operating a motorcycle or scooter without a valid license, are not covered.
- Medical tourism: Travel insurance typically does not cover medical expenses related to elective procedures or medical tourism, such as a facelift or a tummy tuck.
- Pre-existing conditions: Travel policies generally do not cover pre-existing conditions of the policyholders, if the insurance considers the condition to be high risk and could incur medical costs overseas.
- Engaging in reckless activities/behaviour: Participating in high-risk sports and activities, or engaging in reckless behaviour, may not be covered by travel insurance.
It’s important to carefully review the policy wording to understand the specific exclusions of a business travel insurance policy.
Baggage Travel insurance
Baggage Travel Insurance
Cover for personal baggage is included in all mainstream travel insurance policies, whether they are single trip insurance or annual travel insurance plans.
Some insurance policies that are more specialized such as cruise travel insurance or golf holiday insurance may provide additional or separate types of cover, normally to include additional equipment.
Typically, baggage is covered in the sense of it being normal suitcases that are checked in and out of an airport or train station, as well as carry on luggage.
Cover will normally include loss or damage to the baggage itself, as well as what is inside the baggage such as money and travel documents and other valuables.
It is important to note that there are likely to be specific limits per item within the travel insurance policy as well as limits on specified valuables as well.
There is also an expectation by the insurance company that the individual responsible for the baggage will take all reasonable precautions to make sure it is not left unattended or damaged in such a way that could have been prevented.
The various limits for baggage and specific items will be detailed in the insurance policy document and form the basis of any acceptance or rejection of a subsequent claim.
Baggage Travel Insurance Claim
In the event of baggage being stolen or lost it is important that the local police are notified, and that a police report is issued to you and a copy sent to the insurance company.
The insurance company may also want a written report from your travel provider that details the reported loss.
The insurance company is also likely to want proof of ownership and value of any items that are claimed to have been lost or stolen. This can sometimes be quite a contentious area if items are quite old or to difficult to establish proof of value.
An insurance company will accept something such as a receipt for proof of both ownership and value. In other situations, it might be necessary for the policy holder to have a valuation done before travelling to prove how much something is worth.
It is worth making the point that it is always a good idea to consider if it is really necessary to travel with items of real value or items that are difficult to replace.
If there is a claim for a loss or theft of a smartphone, cell phone or any type of device that has a service provider attached to it, the insurance company will want proof that the service provider has been contacted and asked to discontinue the service. This is to make sure that no additional charges occur onto the theft or loss has happened.
If money or travellers cheques have been lost or stolen, the insurance company will want evidence that this money was withdrawn or bought prior to the loss or theft occurring.
Damaged Baggage
Quite often baggage can be damaged or lost in transit during a plane flight, and this is one of the most common claims under travel insurance policies.
Property Irregularity Report
If this happens and is noticed during baggage reclaim, it is important that the policyholder obtains what is known as a property irregularity report from the airlines in order to prove the loss or damage occurred and is a valid claim under the policy.
It is also important to keep the luggage tags which were attacked to the boarding pass when the luggage was checked in. This can be a useful document when submitting a travel insurance claim. It is also a good idea to photograph the damage that has been caused to the baggage and ideally use a digital timestamp.
If compensation is going to be claimed from the airline itself then there are normally strict date guidelines as to how long someone has in order to submit a claim. This can often be a short as seven days and needs to be strictly adhered to.
Lost or Delayed Baggage
If the luggage or package is not at baggage reclaim and appears to have been lost or mislaid, again the airline may be responsible. It is important to notify this to airline staff in the baggage hall before leaving the hall or the airport and take a note of the baggage reference number and to get a copy of the subsequent airlines report.
Baggage Claims
Lost or damaged baggage may be claimable under an airline compensation scheme, or maybe recoverable under your travel insurance policy. What is important to note is that it cannot be claimed under both, as that would effectively be an act of fraud.
It is possible that the insurance company would request or instruct you to try and collect off the airline first, and then only claim under the policy if that proves difficult to do.
It is also possible that the insurance companies may just settle your claim and then try and reclaim the money from the airline on your behalf.
Cruise Travel Insurance
Cruise Travel Insurance
Cruise insurance is a specialized form of travel insurance designed to address the things that can go wrong when on a cruise. From medical emergencies to trip cancellations, cruise insurance provides coverage for a range of scenarios.
It is a form of travel insurance that is separate from normal travel insurance policies, although it can sometimes be bought as a policy extension
Typically, a cruise insurance policy will cover
- Trip cancellation and interruption: If you have to cancel or interrupt your cruise for a covered reason, such as illness or injury, your insurance will reimburse you for the prepaid costs of your trip.
- Medical expenses: If you get sick or injured on your cruise and require medical treatment, your insurance will cover the cost of your care. This includes both on-board and off-board medical expenses, including being restricted to your cabin if necessary.
- Evacuation: If you need to be evacuated from your cruise ship due to a medical emergency, your insurance will cover the cost of your transportation to a hospital or other medical facility.
- Baggage loss or damage: If your luggage is lost, damaged, or stolen, your insurance will reimburse you for your losses.
- Missed port departures: If you miss a port departure due to a covered reason, your insurance will cover the cost of your transportation to the next port.
- Cruise line bankruptcy: If your cruise line goes bankrupt, your insurance will reimburse you for the prepaid costs of your trip.
How much does Cruise Insurance Cost?
You can buy cruise insurance from a variety of sources, including cruise lines, travel agencies, and independent insurance providers.
Some important factors to consider when buying cruise insurance include the cost of the insurance, the coverage limits and exclusions, the reputation and financial stability of the insurance provider, and any additional benefits or features offered by the plan
The cost of cruise insurance can vary, but it generally ranges from 5% to 10% of your total trip cost.
Several factors can influence the price, including your age, the amount you’re spending on your trip, the length of your cruise, the number of people covered under your policy, and your destination and ports-of-call.
For example, the average price of basic coverage for a seven-day trip in February 2023 from the U.S. to Mexico was approximately $124, and the cost of basic coverage for a Disney Cruise Line vacation was about $177 /$200
A couple of more specific examples include :
- For a $3,000 trip, the cost of cruise insurance is estimated to be between $150 and $210, which is approximately 5-7% of the total trip cost.
- The average price of a basic coverage plan for a seven-day trip in February 2023 from the U.S. to Mexico was $124, and the average cost of basic coverage for five different cruise insurance add-ons for a similar trip was $111.20.
- The Travel Basic plan from Travelex Insurance Services cost $116 for a sample trip, which is just below the average for plans listed.
What determines cost of cruise travel insurance?
The cost of cruise travel insurance is influenced by several factors, including age, trip cost, cruise length, number of people covered, destination, and plan type. Older travellers are considered to be at higher risk for health problems, so the cost of travel insurance rises with age.
Cruise Travel Insurance Claims
- Contact the Insurance Company: Always call the insurance company before submitting a claim to understand the required documents, the correct steps to file a claim, and how to submit the claim.
- Gather Supporting Information: Collect all the necessary supporting documents, such as proof of trip cancellation, medical records, or any other relevant information required by the company.
- File the Claim: File the claim either online, through the insurance company’s website or app, or over the phone. It’s essential to provide all the required information and documentation to ensure a smooth process.
- Follow Up: After filing the claim, follow up with the insurance company to ensure that all the necessary information has been received and to address any additional requirements.
- Appeal if Necessary: If the claim is denied, you can file an appeal with the insurance company. In some cases, a significant percentage of appeals are honored.
- Contact Regulatory Bodies if Needed: If the appeal is not successful, contact the appropriate comsumer protection body in your home country.
What documents are needed to file a claim?.
The more the better !
Generally speaking :
- Trip Cancellation/Interruption:
- Copies of all bills, invoices, receipts, and applicable credit card/bank statements pertaining to claimed expenses
- Medical Emergencies:
- For illness or injury, provide the Attending Physician’s Statement Claim Form and Patient Authorization Claim Form.
- Baggage Delay/Loss:
- Documentation related to the loss, theft, or damage of baggage, such as receipts and a copy of the rental car agreement if applicable
- Trip Delay:
- Receipts for additional meal and accommodation expenses incurred during the delay
- Other:
- Proof of incident (e.g., medical receipt, police report) for non-medical trip cancellation or interruption.
The insurance policy should specify exactly what documents are required for any type of claim and they can normally be uploaded to the insurance company website as part of the claim submission, or sent through the normal postal system, along with a printed claims form. Remember to always keep copies.
Major Cruise Lines
Cruise lines are big business and many will make some type of travel insurance compulsory. Some will have their own in house insurance which travellers will have to buy, or show that they have their own equivalent policy in terms of coverage.
Major Cruise Lines include :
- Carnival Corporation & plc: The world’s largest cruise company, operating over 100 ships across 9 cruise lines, including Carnival Cruise Line, Holland America Line, Princess Cruises, and more.
- Royal Caribbean Group: Operating over 40 ships under the brands Royal Caribbean International, Celebrity Cruises, and partly owning TUI Cruises, Pullmantur, and Hapag-Lloyd.
- Norwegian Cruise Line Holdings: Operating around 30 ships under the brands Norwegian Cruise Line, Regent Seven Seas, and Oceania Cruises.
- MSC Cruises: A global cruise line with a fleet of modern ships operating various itineraries around the world.
- Princess Cruises: A well-known cruise line offering a wide range of itineraries and onboard activities.
- Cunard Line, Costa Cruises, and Disney Cruise Line are also major players in the cruise industry.
Here are a couple of examples of a cruise company’s own travel insurance plan
- Norwegian Cruise Line’s Booksafe Travel Protection Plan: This plan offers comprehensive coverage for trip cancellation, interruption, medical expenses, and more. It also includes a “Cancel for Any Reason” option, which allows you to cancel your cruise for any reason and receive a refund of up to 75% of your prepaid expenses.
Travel Insurance by Country
Travel insurance is pretty much a must, whatever country you are going to visit, but its cost and necessity does vary country by country.
For some countries it is a legal requirement, for others things like medical costs, as per USA, make it pretty crucial for most people.
Some countries are safer than others, and some parts of some countries are safer than others.
Insurance companies require people to follow any travel advice that their national government gives out about the state of a country, and how safe it is to travel there.
Governments of other countries than your own will also have travel advice for their citizens, which will be useful to follow.
Whilst travel insurance will usually cover most medical conditions, albeit at a cost, if you have a condition such as epilepsy it is worth remembering that some countries still have quite a cultural and social problem with people who suffer from it.
It is also worth researching the medical system of any country you are going to, especially if you are visiting any remote areas of that country.
Also check if your insurance company will pay any medical bills directly to the hospital, or if you are expected to pay them and claim the money back from the insurance company.
Below is a list of articles about travel insurance to different countries, including some general travel tips and information on safety, airlines, sports, and health systems etc.