Too Many Unknowns in Russian Plane Crash for Travel Insurance Coverage, Says Squaremouth

ST PETERSBURG, FL November 2, 2015 — The cause behind Saturday’s crash of a Russian airplane in Egypt is still unknown, but the possibility of a terrorist attack has some travelers considering canceling upcoming trips. Squaremouth, a leading travel insurance comparison website, explains why cancellation coverage related to the incident is limited, even for travelers who already have a policy.

Terrorism Speculation Won’t Trigger Coverage for Insured Travelers

Unfortunately for those who already have a travel insurance policy, the speculation of terrorism is not enough to trigger the terrorism benefit. This means travelers with cancellation policies are not yet eligible to cancel an upcoming trip to Egypt.

Should further investigation show the crash to have been caused by an act of terrorism, travelers who purchased their policy before October 31 may be covered to cancel their trip. In order to be covered, the event must meet their policy’s definition of terrorism, which typically requires it to occur in or near a city on the traveler’s itinerary and within a specific number of days from their arrival.  

Only Limited Coverage Available for New Policy Purchases

Coverage is also limited for travelers who have not yet purchased an insurance policy.

In order for an event to be covered under a travel insurance policy, the event must occur after the policy is purchased. In this case, even though the event has not been deemed “terrorism”, it has already occurred, meaning it is excluded on any travel insurance policies purchased after October 31.

“Insurance policies are very specific in their language of what is covered and when it’s covered. Because the crash has already occurred, it is too late to buy a new policy for coverage related to it,” said Squaremouth CEO Chris Harvey. “For travelers who have yet to buy a policy, and who are afraid to fly after this incident, the only real option at this time is the Cancel For Any Reason upgrade.”

Cancel For Any Reason is an optional upgrade that allows travelers to cancel their trip for an otherwise excluded reason. In order to be eligible for this benefit, the traveler must purchase the policy within 21 days of their first deposit date for the trip, must insure 100 percent of their trip cost, and must cancel their trip at least 48 hours before departure. This benefit will only reimburse up to 75 percent of the traveler’s non-refundable prepaid trip expenses.

To keep travelers up-to-date with travel insurance coverage related to the Russian plane crash, Squaremouth launched the Russian Metrojet Plane Crash and Travel Insurance Information Center. This online resource is updated with official provider position statements, answers to frequently asked questions, and current government travel alerts and notices related to the Russian plane crash in Egypt.