Last Updated: 05/26/2020 09:28AM ET
UPDATE: Norwegian Cruise Line has raised more than $2 billion, and has announced that they can stay afloat for at least one year without revenue. This announcement followed a statement that the company may need to seek bankruptcy protection.
On May 5, 2020, Norwegian Cruise Line announced that they are having financial troubles and may seek bankruptcy protection. The announcement comes during a time where many travel suppliers worldwide, including cruise lines and airlines, are experiencing financial troubles due to the COVID-19 pandemic.
Many travel insurance policies include coverage for the Financial Default of a travel provider, which is defined as a cruise line, airline, common carrier, or tour operator. Policies with this coverage can reimburse a traveler for their prepaid and non-refundable trip costs if their trip is canceled because their travel provider ceased operations for financial reasons.
The Norwegian Cruise Line Financial Default Travel Insurance Information Center explains coverage related to the situation. This database is regularly updated by Squaremouth’s travel insurance experts with answers to frequently asked questions, official provider position statements, travel alerts and notices, and other information as the situation develops. Information is subject to change at any time.
Questions? Squaremouth’s travel insurance experts are on hand to answer your questions about coverage for Norwegian Cruise Line potentially entering into financial default. We are available from 8am to 10pm ET daily chat and by phone at 1-800-240-0369.
In order to have coverage for Financial Default, travelers must purchase their policy within 10-21 days of making their initial trip deposit, depending on the policy.