Travel insurance carriers release position statements when current events affect coverage. The following is a position statement from Travelex on the volcanic eruption in Iceland.
Ash clouds from the volcanic eruption in Iceland have created a travel crisis in Europe and beyond. With more than 95,000 flight cancellations, travelers worldwide are affected by the backlog of delays.
For travelers who purchased a Travelex policy on or before April 14, 2010, the ash cloud travel disruptions are considered a covered reason due to weather. Coverage applies in the following areas for: Travel Basic, Travel Select, Travel Max, TraveLite & Travel Plus.
The ongoing eruptions from the volcano over glacier Eyjafjallajokull is considered a known event therefore is not covered for travelers purchasing policies at this time. The volcano would need to settle, as determined by scientists, then re-erupt at a later time to be considered a new event by our underwriters.