Travel Insurance Coverage for the Government Shutdown in 2025
Key Statistics:
- The impacts of the 2025 Government shutdown continues to significantly disrupt U.S. air travel, contributing to an increase in flight disruptions at major airports nationwide.
- The 43-day shutdown that began on October 1, 2025, and ended on November 13, 2025, was the longest government shutdown in U.S. history, with the travel industry estimated to have lost more than $1 billion per week.
- Cancel For Any Reason & Interruption for Any Reason are the only types of travel insurance coverages that can fully protect you from delays and cancellations during a government shutdown.
Follow along as we walk you through all the scenarios and caveats of when travel insurance can, could, and cannot apply during a government shutdown.
Does Travel Insurance Cover Government Shutdowns?
Travel insurance may not cover you during a government shutdown unless the policy was purchased before the 2025 shutdown was officially announced or you have Cancel for Any Reason or Interruption for Any Reason coverage.
This is because most travel insurance policies are designed to cover unforeseen events, and buying after the shutdown was announced makes it a foreseen event, often excluding the shutdown as a covered reason.
That said, if you are looking for travel insurance for an upcoming trip, you can buy a plan that includes Cancel For Any Reason and Interruption For Any Reason coverage, which will allow you to still be covered during the shutdown.
These benefits come as optional add-ons available on select policies, and they allow you to cancel or cut your trip short for any reason at all and still receive partial reimbursement. These coverages are considered time-sensitive benefits, meaning you must buy them within a certain time frame to be eligible. So, it’s best to buy your policy as soon as possible to ensure you secure these benefits.
Buying A Policy Early Ensures Maximum Protection
Generally speaking, purchasing travel insurance as early as possible is the best way to maximize your coverage as you gain access to time-sensitive benefits and also secure your coverage for unforeseen events. Once an event is named, it’s considered foreseen, and typically excluded from travel insurance coverage.
Depending on the plan, purchasing travel insurance early can get you access to the following time-sensitive benefits:
- Cancel For Any Reason Coverage
- Interruption For Any Reason Coverage.
- Pre-existing Condition Coverage
These are the only types of travel coverage that can protect you from foreseen events, like the current government shutdown, but they require you to buy them within 14-21 days of your initial trip deposit.
That said, there are other insurance benefits, like travel delay protection and baggage delay or loss protection, that may indirectly offer coverage during a government shutdown if they are the result of common carrier issues.
What Travel Insurance Might Cover During the Government Shutdown
Depending on your policy and the cause of the travel disruption, there are a few scenarios in which travel insurance might cover you during a government shutdown.
Some examples include:
- Your flight is canceled, and the airline states the cause was a common carrier issue, such as a mechanical failure.
- Your flight is significantly delayed for a reason attributed to the airline or common carrier.
- Your baggage is lost, damaged, or delayed by the airline or common carrier.
Unless otherwise stated, some travel disruptions during a government shutdown may still fall under a policy’s “common carrier” coverage, depending on how the airline classifies the delay or cancellation.
Travelers should always review their plan details and any documentation from the airline when filing a claim to understand how coverage may apply.
For example, if staffing shortages or furloughs lead to operational issues, the airline may cite those delays under standard categories such as “mechanical issues” or “operational disruptions.” In those cases, coverage could apply under certain travel delay benefits.
Ultimately, it’s important to read the fine print of every plan you’re considering, as coverage can vary significantly by provider and policy. We recommend keeping a close eye out for sections with text relating to “unforeseen events” and general exclusions related to cancellation, interruption, delay, and missed connection benefits.
What Does Travel Insurance Not Cover During Government Shutdowns?
Unless you buy CFAR or IFAR coverage, travel insurance will not cover all inconveniences or mishaps related to the government shutdown.
For example, standard travel insurance will not cover the following scenarios:
- Missed flights due to long TSA lines or security checkpoints caused by the shutdown
- Cancelling your trip simply to avoid the potential disruptions caused by the shutdown
As a reminder, the only way to receive coverage for these scenarios is to purchase Cancel For Any Reason or Interruption for Any Reason Coverage.
Types of Travel Insurance Coverage for the Government Shutdown
Below is a look at the most common benefits within a travel insurance policy that could apply if you are affected by the government ceasing operations.
Cancel For Any Reason & Interruption for Any Reason
Cancel For Any Reason (CFAR) is an optional benefit when purchasing travel insurance that provides travelers with maximum cancellation flexibility.
If you purchase a policy with this add-on, you can typically be reimbursed for up to 50-75% of your prepaid, non-refundable trip costs. This coverage is ideal because it allows you to cancel for reasons outside of what is included by your policy’s standard Trip Cancellation coverage.
However, CFAR lets you cancel your trip no matter the reason and recoup a portion of your prepaid costs, including if you’re simply concerned about risks tied to the government shutdown.
Keep in mind, this coverage typically has to be purchased within a certain time from after your first trip’s deposit has been paid (usually 14-21 days), and you must cancel your trip 48 hours before your scheduled departure.
Cancel For Work Reasons
If you purchased your policy before the government shutdown was announced, the Cancel for Work Reasons travel insurance benefit may cover travel expenses if you need to cancel or interrupt your trip due to unforeseen work requirements. For example, if you are unexpectedly called in from leave or your job demands you stay at work during the government shutdown, this benefit could apply.
This benefit is often included within travel insurance policies under the Trip Cancellation and Trip Interruption coverage, and can help you recoup up to 100% of your prepaid, nonrefundable trip costs. Though uncommon, some plans may also offer this benefit as an optional add-on that can be purchased at checkout.
Coverage varies by policy, so it’s best to read the fine print to understand if this coverage applies to your unique circumstances.
Employment Layoff Coverage
Employment Layoff coverage, also known as Job Loss Insurance, can cover up to 100% of your prepaid, nonrefundable expenses if you are involuntarily laid off or terminated from your job and need to cancel a trip as a result. This benefit is already included in some comprehensive travel insurance plans under cancellation coverage.
Coverage varies by policy, so it’s best to read the fine print to understand if this coverage applies to your unique circumstances.
If you lost your job due to the government shutdown and purchased coverage before the shutdown was announced, this coverage may allow you to cancel your trip and receive reimbursement for non-refundable expenses. Keep in mind that most plans have individual eligibility requirements that must be met in order for the coverage to apply.
Travel Delay Coverage
Travel Delay Coverage provides reimbursement for unexpected expenses incurred while experiencing a significant common carrier delay. Most plans will cover the costs for things like meals, hotel stays, and local transportation that occurred while waiting for your flight.
It can be especially helpful during a government shutdown if your flight is significantly delayed for carrier-specific reasons such as the ones mentioned above. Since most airlines declare air-traffic staffing shortages as “common carrier delay”, this coverage may indirectly offer you coverage during a shutdown.
Although this benefit is included in most travel insurance plans, coverage varies across policies. Read the fine print to understand if this coverage applies to your unique circumstances.
Missed Connection Coverage
Missed Connection is a travel insurance benefit that reimburses you if you miss a connecting flight, cruise departure, or tour departure caused by a significant common carrier delay. This coverage is one of the few ways that travel insurance policies can help you with trip delays, and it’s generally included in most standard policies.
During the government shutdown, challenges like staffing shortages and operational disruptions can increase the potential for flight delays. If you miss a connection because of this, this benefit might reimburse you for additional expenses you incurred, such as meals, accommodations, or costs for a new flight or alternate transportation.
Since coverage varies by policy, we recommend reading the fine print to understand if this coverage applies to your unique circumstances.
Benefits to look for if you already bought your policy
If you purchased a travel insurance policy before the shutdown was officially announced, call your travel insurance provider for clarification on your coverage and check your policy wording for exclusions relating to the following coverages:
- Cancel for Work Reasons coverage
- Trip Cancellation or Travel Delay coverage
Check if you have the following coverage active as part of your policy:
- Cancel for Any Reason Coverage
- Interruption for Any Reason Coverage
Benefits to look for when buying a new policy
If you’re buying a new policy during the shutdown, it’s already considered a known event, meaning you would not be able to cancel your trip using the basic trip cancellation benefits offered by comprehensive policies unless they are unrelated to the government shutdown, like falling ill.
Instead, consider purchasing the following types of coverage for more flexibility:
- Additional upgrades, like Cancel for Any Reason or Interruption for Any Reason
As called out in the name, these upgrades allow you to cancel your trip for any reason, which may become particularly handy if you are visiting a national park and find it closed as a result of the government shutdown. Terms such as “destination closure” or “attraction closure” are key to look for when reviewing policies.
FAQ: Travel Insurance for Government Shutdowns
Am I Covered If I Miss My Flight Due To Long Security Lines?
Typically, travel insurance won’t cover missed flights due to long TSA or security lines as a result of low staffing from the shutdown, as they’re considered preventable and routine travel risks.
Am I Covered If My Flight Is Canceled Due To Staff Shortages?
Since the government shutdown is a known event, coverage can vary significantly by provider and policy. We recommend reviewing the fine print of any plan you already bought or are considering buying. Pay close attention to sections on unforeseen events and general exclusions.
Am I Covered If I Lose My Government Job As Part Of The Shutdown?
If you purchased travel insurance before the shutdown was announced, Employment Layoff coverage may reimburse your prepaid, non-refundable trip costs if you are involuntarily laid off or terminated due to the shutdown.
Ultimately, your policy documents will dictate how this coverage is applied. Contact your provider or review your plan to understand how this coverage applies in your case.
Am I Covered If I Decide To Cancel My Trip Because The Government Is Shut Down?
Canceling your trip simply because there is a government shutdown is not covered under standard policies. However, Cancel For Any Reason coverage can reimburse you if you cancel for reasons related to the shutdown or for any reason at all.
Can I Cancel My Trip If My Travel Companion Lost Their Job As Part Of The Government Shutdown?
There are certain policies that will allow you to cancel your trip if your travel companion loses their job, but it depends on the policy’s specific terms. Employment Layoff coverage might apply if you purchased the policy before the shutdown was announced, but always review the fine print in your policy.