What is financial default?
Short Answer
Financial Default can provide Trip Cancellation and Trip Interruption coverage in the event of a travel supplier’s complete cessation of operations due to financial circumstances, whether or not bankruptcy is filed.
More Detail
Financial Default provides reimbursement for unused prepaid and non-refundable trip payments and deposits if a trip is cancelled or interrupted due to the travel supplier’s complete suspension of operations due to financial circumstances, whether or not bankruptcy is filed. Travel suppliers include tour operators, cruise lines, airlines and hotels.
Depending on the insurance provider, this coverage may be time-sensitive and require you to purchase a policy within 14-21 days of your initial trip booking. It may also require a 10 to 21 day wait period after the policy is purchased before this benefit goes into effect.
A summary of the Financial Default benefit offered by each of the policies sold on our website can be found here: https://www.squaremouth.com/travel-insurance-benefits/financial-default.
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!
- Author: Steven Benna
- Title: Lead Data Analyst