ST. PETERSBURG, FL July 30, 2012 -It is too late to purchase travel insurance for the potential strike of United Airlines, warns travel insurance comparison site, Squaremouth.
In the event of a strike, travelers may mistakenly believe that travel insurance will protect them from associated losses. While many policies do cover strikes, there are restrictions. “In order to claim the cancellation benefit of many travel insurance policies, the tickets must be purchased while a strike is completely unforeseen,” explains Chris Harvey, CEO of Squaremouth. “Coverage will not be provided for tickets purchased after talks of a strike have been made public.”
A travel insurance policy with this benefit must also be purchased while the strike is unforeseen; unless both the policy and tickets are purchased prior to a strike announcement, the benefit is void. Because the possible strike of United Airlines is now common knowledge, coverage for it can no longer be purchased.
Since the merger between United and Continental airlines in 2010, pilots have continued to work under separate agreements from each of the former airlines. However, the changes sought by the pilots require formulation of a joint contract. After two years of failed negotiations, United pilots have voted to authorize a strike.
The vote doesn’t guarantee a strike will occur.
Because of the massive economic implications of a major common carrier shutdown, federal law makes it very difficult for airlines to organize a strike. In order for the proposed strike to move forward, the National Mediation Board will have to declare an impasse in negotiations, which would begin a 30-day countdown. Unresolved, this could initiate a legal strike if Congress or the President do not step in to block it.
If an airline has organized a legal strike and the 30-day countdown is underway, purchasing tickets for travel dates that fall after the deadline may be a gamble. Alternatively, if tickets and travel insurance are purchased before a strike becomes public, the trip cancellation benefit of many policies will provide coverage. The strike must be active, and there must be cessation of all of the airline’s services.
If a United Airlines strike actualizes, it is too late to purchase a policy that will cover any costs incurred due to it. Hopefully, both parties will soon reach a deal that will hedge a strike. Until then, Squaremouth recommends air travelers follow developments in negotiations in order to sidestep any possible problems with travel reservations.
Squaremouth is America’s fastest growing travel insurance comparison site, helping customers instantly quote, compare and buy policies from every major provider. Squaremouth has an extensive network of partner sites worldwide. The company is headquartered in St. Petersburg, FL., with offices in Fort Wayne, IN. For more information, visit www.squaremouth.com.
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Squaremouth offers products from the following travel insurance providers:
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