Travel Insurance FAQ

Are there conditions that apply to the Supplier Default & Bankruptcy benefit in my travel insurance?

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With today’s uncertain economic times, many travelers are becoming increasingly concerned with cancellation coverage in the event a travel supplier goes into financial default or bankruptcy. Many of the very basic and lesser expensive travel insurance plans do not cover this benefit at all. While the more comprehensive policies can provide coverage, conditions usually will apply such as purchasing the insurance within a specified number of days from your very first payment toward your trip. Some insurance carriers have a restrictive list of excluded providers, while others have a list of “covered” suppliers.  Some insurance carriers provide cover after a “waiting period” from the time of purchase.  Also, the coverage does not usually apply if the default or bankruptcy is by the travel agency or travel supplier that solicited and sold the travel insurance plan. Your best default / bankruptcy insurance coverage is when purchasing insurance from a third party that is independent of the cruise, tour or other supplier that provides your travel arrangements.