5) Purchase the right kind of insurance
Travel insurance that provides cancellation protection can help minimize risk should airline, cruise company, hotel or tour operators become insolvent.
Sandberg offers two suggestions:
First, by purchasing directly from a supplier and not through a travel agent or intermediary, travelers have the option to purchase travel insurance to cover a supplier’s financial insolvency. Travel insurance does not provide coverage if a travel agent goes out of business.
Second, travel insurance with a Cancel For Any Reason (CFAR) upgrade allows the insured to cancel for any reason with 50-75% of the trip costs reimbursed, depending on the plan. (This option is typically only available at the time a policy is purchased and requires that the traveler insure 100% of their prepaid trip. Additionally, the traveler must purchase the policy within a set number of days, usually 7-21 days, after their initial trip payment date.)
To compare policies, Travel Weekly’s Biesiada recommends consumers check insurance comparison sites, like TravelInsurance.com or Squaremouth.com.
On the subject of insurance, consumer advocate Elliott adds: “One little known fact: The ‘protections’ offered by tour operators is sometimes self-insured. So if an operator goes out of business, you’re out of luck.”
Read the full Forbes article online here: https://www.forbes.com/sites/irenelevine/2019/09/23/how-to-avoid-a-thomas-cook-like-travel-disaster/#3973b1c43200