If my travel supplier goes bankrupt, am I covered to cancel my trip?
Yes, if your policy includes the Financial Default benefit, you can be covered to cancel your trip in the event of financial insolvency of your travel supplier that causes a complete suspension of their operations.
Financial Default provides coverage in the event of a complete suspension of operations of your travel supplier due to financial insolvency, whether or not bankruptcy is filed. If this occurs, you may be reimbursed for the expenses you insured that were lost as a result of the travel supplier’s suspension of operations.
Within some policies, the Financial Default benefit is time-sensitive, and your policy must be purchased within 14-30 days of the first trip payment in order to be eligible for coverage.
Additionally, some providers have a wait period before this benefit goes into effect, which is usually 10 or 14 days after you purchase your policy. If your policy has a wait period, this means your Financial Default coverage may not apply until 10 or 14 days after you purchase your policy, and any financial insolvency of a travel supplier or tour operator that occurs during the wait period would not be covered.
To determine if your plan offers Financial Default coverage, please check the Policy Details or policy certificate.
This information can vary based on the travel insurance policy. Please review the policy certificate to verify coverage. 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!