Although there are no hard and fast rules, or dates, when travel will be resuming I remain ever hopeful that it will. To be sure I have the most up to date information and health protection I have done some more research into travel insurance and how it has changed in the age of Covid-19. I hope this information will help you plan as we slowly but surely emerge from this crisis.
Most travel insurance coverage requires, first and foremost, compliance with the health and travel advisories provided by our government. Please visit the Health Canada website at https://travel.gc.ca/travelling/advisories for the current and ongoing travel advisories. Please note that the advisory to avoid cruise travel was issued on March 9, 2020 and for all other non-essential travel on March 13, 2020. These dates are very important benchmarks against which coverage, or exclusion of coverage, due to Covid-19 are measured.
Emergency Medical Insurance
Since March 13, 2020 travel insurance policies have excluded losses due to, or caused by the coronavirus under their “travel advisory” exclusion which essentially states that if you travel after an advisory warning issued from the government recommends otherwise you will not have coverage.
Also important to note that anyone travelling when a doctor has advised you not to for any reason will not have coverage under a travel insurance emergency medical policy.
Trip Cancellation Insurance
Cancellation insurance is designed for cancellation of your travel plans before you leave due to sudden or unforeseen circumstances as listed specifically in the policy. Reasons such as health, pregnancy or adoption, employment or legal are just some of the risks listed and should be reviewed carefully either before you apply or after you have purchased it.
As of March 4, 2020 Covid-19 is considered a known circumstance for travel, which means it is no longer considered a sudden and unexpected event. Coverage purchased on or after March 4, 2020 will not cover cancellation due to the coronavirus.
Some, but certainly not all, travel providers offer “cancel for any reason” coverage. This would allow you to cancel if there is political unrest, for coronavirus, of just because you feel uneasy about travelling at that time. There are some very specific requirements to get this type of coverage but it does remove the requirement to meet one of the specified reasons listed in the policy. The extension of coverage must be purchased within a few days of booking your trip, you must select a limit of coverage equal to the full cost of your travels and you must decide to cancel at least 48-72 hours before departure. Any amount refunded by the travel supplier is deducted by the amount refunded from the plan, and it usually only refunds between up to 50% to 75% (depending on the carrier) of the insured cost of the trip. This coverage will also add about 40 – 50% to the cost of your travel insurance plan.
Also most insurance providers will not cover the costs of your trip if you have received a credit. If you have not actually suffered a financial loss as the amount paid is still yours in the form of a future travel credit, you are not in a position to be indemnified. A contract of indemnity, such as travel insurance in all its forms, only responds when the insured has suffered a financial loss, the same as your home or car insurance would. If there is no actual loss, there is no claim. Coverage is only available for non-refundable expenses and service fees. Nor will they cover the cash value of any travel costs that were booked or paid for with rewards such as Air Miles or other Points options.
Trip Interruption Insurance
This applies when your trip is interrupted due to an insured risk during your travels. This is generally sold in connection with cancellation insurance but can, through some providers, be purchased as a stand alone policy. It is fairly inexpensive that way.
Some insurance providers will offer top up options to extend your coverage for a longer period of time if you are not returning as anticipated, or when your primary plan, such as through work or a credit card, limits the number of days per trip. Most providers are no longer offering this option. If you have an existing policy with a provider and want to extend it you usually can get another 10 days if you contact them before overage has lapsed. If you need more than 10 days you must apply by citing the extenuating circumstances.
The most important advice I can provide to you is to read your policy wording so you know what is or isn’t covered. Ask questions if you do not understand and keep asking until you do. When it comes to the health and well being of you and your family there are no stupid questions.