Actually, employment layoff is a covered reason under the standard trip cancellation benefit for many travel insurance policies. Unforeseen layoff is typically covered if you have been employed on a continuous basis with the same employer for 3 years. A few policies will provide cover for 1 or 2 years and others require 5 years of continuous employment for this benefit. There are a few policies which do not offer this benefit. Check the policy details to determine if covered and which conditions apply. Cancel for Work Reasons is typically an optional benefit in travel insurance for an additional premium and does not include termination of employment.