A common carrier is a commercial entity that provides transportation services to the general public for a fee. In travel, common carriers typically include airlines, cruise lines, ferries, trains, and bus operators.
The term common carrier appears frequently in travel insurance policy documentation because many plans offer coverage for disruptions involving these services. This can include delays, cancellations, mishandled baggage, financial default, and Accidental Death & Dismemberment (AD&D).
Below, we’ll break down the most common types of travel common carriers and how travel insurance can cover travelers using a common carrier.
As mentioned above, a common carrier is a commercial transportation provider that offers services to the general public. To qualify as a common carrier, an entity must operate on a fixed schedule, charge a fare, and be regulated by a governing authority.
Great examples of common carriers you’ll likely encounter while traveling include:
Not all forms of transportation qualify as a common carrier. In general, if a service is privately arranged, operates on demand rather than on a fixed public schedule, or is not available to the general public, it typically does not meet the definition.
Some examples of transportation that are not considered to be a common carrier include:
Most travel insurance plans available on Squaremouth include benefits that protect against common carrier disruptions, saving you from financial loss and costly out-of-pocket expenses.
While rare, your travel common carrier may completely cancel your journey without notice, leaving you scrambling to continue your trip.
This could be due to inclement weather, issues, labor strikes, or staffing shortages. If you are no longer able to travel as planned, you may be eligible to cancel your trip entirely and receive full reimbursement of your prepaid, non-refundable trip costs through your policy’s Trip Cancellation benefit.
Significant delays often result in added stress and unexpected expenses. Fortunately, most travel insurance plans offer coverage for food and accommodation costs if your common carrier disrupts your travel schedule.
In most cases, you will qualify for this coverage if your common carrier is unable to rebook your trip within 24 – 48 hours, depending on the plan.
According to the Department of Transportation, roughly a quarter of all flights are delayed at least 15 minutes. Significant common carrier delays often result in added stress and unexpected expenses.
Most travel insurance plans include Trip Delay coverage, which can cover the cost of food and overnight accommodations if your common carrier disrupts your travel schedule for a lengthy period of time, typically by at least 3-12 hours.
Generally, travel insurance will cover common carrier delays relating to:
Delay coverage varies by plan, so always confirm with your insurer if a specific common carrier delay is eligible for reimbursement.
Airlines and other common carriers mishandle millions of bags each year. If your luggage is delayed en route to your destination, you can be reimbursed for necessary purchases while you wait for your belongings to arrive.
The Baggage Delay benefit will typically cover the cost of essentials like:
Common carriers aren’t exempt from financial hardships. In the event your common carrier suspends operations due to bankruptcy or other financial circumstances, you may be reimbursed for your prepaid, non-refundable trip costs.
To be eligible for this coverage, you will need to purchase a comprehensive policy that includes coverage for Financial Default cancellations.
To be eligible for this coverage, you will need to purchase a comprehensive travel insurance policy that includes coverage for Financial Default cancellations. This is a time-sensitive benefit under some plans, so be sure to check if any eligibility requirements apply when comparing policies.
For added protection while traveling, some travel insurance providers offer Common Carrier AD&D coverage. This medical benefit provides a cash payment if accidental loss of life or limb occurs while aboard a plane, train, bus, cruise, or other type of common carrier. The payment will be paid in a lump sum to the beneficiary you name on your policy.
In addition to travel insurance, it’s also possible to get limited protection from common carriers themselves. However, this protection is not as reliable and is often determined on a case-by-case basis.
Most U.S. airlines, cruise lines, and other travel common carriers are not required to reimburse you for delays caused by weather, mechanical issues, or operational disruptions. This comes after the DOT withdrew a rule forcing carriers to compensate passengers for significant flight delays or cancellations.
In many cases, a common carrier will offer meal vouchers or rebooking on the next available departure, if offered at all. Lodging, transportation, and other out-of-pocket expenses will likely be your responsibility, too.
Common carriers may offer minimal compensation for lost, damaged, or delayed luggage, but reimbursement limits are often low, and the claims process can be lengthy. Reimbursement rates often vary by common carrier, as there is no overarching law requiring compensation for luggage issues.
Not every disruption involving a common carrier is eligible for travel insurance coverage. Common exclusions may include:
Because exclusions vary by policy and provider, it’s always important to review your plan’s Certificate of Insurance for full details.