Although many travel insurance policies include coverage in the event a traveler’s travel provider collapses, this typically does not include the company they booked through.
Most policies with the Financial Default benefit include language that states coverage is not provided if the agency or organization a traveler bought their travel arrangements from collapses. In this case, Financial Default coverage may not apply, depending on where a traveler bought their travel insurance. This is because some policies do not provide coverage if the company that solicits the travel insurance goes bankrupt.
For example, if a traveler bought their travel insurance either as part of a package deal with their trip, or as a recommendation through their travel agent – Thomas Cook in this case – Financial Default coverage likely does not apply. In order to be eligible for this benefit, the traveler must have purchased directly through a travel insurance provider, an insurance agent, or an aggregator site like Squaremouth.
This information is time-sensitive and may vary by policy. If you have questions about a specific policy, please contact us directly at 800-240-0369. Our customer service representatives are available from 8am to 10pm ET, seven days a week, and are delighted to help!