Press Releases

Be Careful, Your Travel Insurance May Not Cover Cancellations Due To Volcanic Ash, Warns Squaremouth

Last Updated:

ST. PETE BEACH, FL May 23, 2011 – The recent Grimsvotn volcanic activity in Iceland is causing travelers to question if their travel insurance policy will continue to cover them in the wake of the eruption. “Although the Grimsvotn volcano eruption is larger and more powerful than last year’s, the new flight safety rules will lessen the chances of flight cancellations and delays,” says Sarah Byrne, Marketing Manager at, a site for comparing and purchasing travel insurance.The European Aviation authorities introduced the new rules to minimize cancellations and delays caused by volcanic eruptions in Iceland, which allows planes to fly at higher ash densities than before. According to authorities, if the new rules were in place last year there would have been a fraction of the commotion and disorder.

As airlines begin to cancel flights, travelers who purchased a travel insurance policy before May 21, should check the policy wording to see where they are covered. Travelers should look for key phrases, such as Trip Cancellation and Interruption, Travel Delay and Missed Connection. Most travel insurance policies are similar in that they reimburse the cost of food, lodging and local transportation during a delay. However, policies tend to differ in the reasons a traveler can cancel and receive a refund. Travelers with policies that consider the events in Iceland to be adverse or inclement weather may be covered to cancel.

If a traveler bought a travel insurance policy after May 21, they will most likely not be covered. “Travel Insurance policies generally do not cover events related to natural disasters that are in progress or have just happened,” warns Squaremouth’s CEO Chris Harvey. Once an event is considered foreseen, it is too late to purchase a policy that will cover that event.

Travelers who do not already have travel insurance and want cancellation coverage, should look for a policy with the Cancel for Any Reason benefit. Cancel for any Reason coverage is a catch-all benefit that, if purchased within 14 to 30 days of an initial deposit payment, allows a customer to cancel a trip without explanation and receive a refund up to 75 percent of the trip cost.

Squaremouth is maintaining a continuously updated list of official carrier statements regarding the Grimsvotn volcanic eruption in Iceland here:

About Squaremouth
Squaremouth is America’s fastest growing travel insurance comparison site, helping customers instantly quote, compare and buy policies from every major carrier. Squaremouth has web sites in the US and UK, and an extensive network of partner sites worldwide. The company is headquartered in St Pete Beach, FL., with offices in Fort Wayne, IN. Visit or

About our Zero Complaint Guarantee
The cornerstone of our commitment to customers is Squaremouth’s guarantee to remove any company from our website if there is a customer complaint that cannot be resolved to our satisfaction. Squaremouth offers the broadest selection of insurance with an emphasis on quality and follow-up care in companies featured. We also factor in independent evaluation from the insurance industry watchdog AM Best.

Chris Harvey
Toll-free (800) 240-0369
Direct (727) 490-5802
U.S. travel insurance –
U.K. travel insurance –