ST. PETERSBURG, Fla. May 8, 2020 — Major travel suppliers, including Norwegian Cruise Line, Virgin Atlantic, and Virgin Australia, have reported potential bankruptcy filings, resulting from COVID-19.
As business closures become imminent, travel insurance comparison site, Squaremouth.com reveals the one benefit that can help travelers concerned about more closures.
Financial Default Benefit Can Reimburse Travelers In Event of Future Supplier Collapse
Travelers concerned about future travel supplier closures can purchase a policy that includes Trip Cancellation coverage for “Financial Default”. This benefit can reimburse a traveler’s trip costs if their airline, cruise line, or other travel supplier goes insolvent or completely suspends their operations.
Travelers must meet the following requirements for coverage to become available:
- Purchase the policy within 10-21 days of their initial trip booking
- Meet their policy’s wait period, which is typically 10-14 days after the policy has been purchased
As of May 8, 2020, Squaremouth.com reports 16 travel insurance providers on their comparison site that offer policies with coverage for Financial Default. Travelers can search for policies that include this coverage here.
Don’t Buy A Policy Now for Trips Already Impacted
Coverage may be limited if a travel supplier has already declared financial hardship. In order for the financial default benefit to apply, a policy must have been purchased before the business was impacted or financial issues became known.
If a travel supplier has announced they may soon be insolvent, many providers consider it to be a foreseen event and exclude it from coverage.
Squaremouth.com has launched the following Current Event Information Centers to explain available coverage for the events. These resources are regularly updated by Squaremouth’s travel insurance experts as information becomes available.
- Norwegian Cruise Line Financial Default Insurance Information Center
- Virgin Atlantic Financial Default Insurance Information Center
- Virgin Australia Financial Default Insurance Information Center
TRAVEL INSURANCE INFORMATION FOR COVID-19
The Traveler’s Guide to Travel Insurance for COVID-19 was created to inform travelers about their insurance options during the coronavirus pandemic.
The Coronavirus Pandemic Current Event Center includes answers to frequently asked questions and providers’ position statements. These resources are updated daily as the situation evolves.