Travel Insurance FAQ

Avoiding Vacations For Fear of Employment Layoff or Revocation of Time Off

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In a recent New York Post article, Joe Robinson, founder of the “Work to Live” campaign, argues that employers should pay attention to the increased productivity of employees who vacation. He explains that it is illogical for employers to be resistant to allowing employees vacation time. Vacations give people the necessary time to emotionally recharge from the daily grind. Ultimately, this results in increased productivity.

Compared to the rest of the world, Americans earn a relatively modest number of vacation days. Interestingly, according to a poll conducted by Expedia, the average American leaves three unused vacation days per year. While some companies allow employees to roll unused vacation days over to the next year, many do not allow time off to be banked.

With the undeniable mental and physical health benefits of vacations, why aren’t Americans taking advantage of all of their time off? In light of the current job market, perhaps one of the major reasons for these unused days is the fear of employment layoff or unexpected work obligations.  To be certain, purchasing a non-refundable plane ticket or hotel stay, only to have to cancel for work-related reasons, could be a costly loss.

Fortunately, many travel insurance policies offer benefits that could curtail such potential losses: cancel for work reasons and employment layoff coverage. The cancel for work benefit provides reimbursement for prepaid, non-refundable deposits and payments if a trip must be cancelled because time off was revoked. The employment layoff benefit provides reimbursement for prepaid trip expenses if an individual experiences involuntary layoff or termination and must cancel their trip as a result.  Most travel insurance policies require an individual to have been employed in a position for at least one year in order to claim the employment layoff benefit, so be sure to check policies for limitations.