Will travel insurance cover trip cancellation as a result of financial difficulties or bankruptcy of the traveler?

Published by Chris Harvey May 12, 2008

While many travel insurance policies offer coverage in the event of financial default or bankruptcy of a travel supplier, financial difficulties on the part of the traveler, an immediate family member, or traveling companion are not generally not covered. Purchasing a policy with a “cancel for any reason” benefit would provide coverage for any cancellation reason providing you meet all the required conditions which usually include purchasing with 14 – 21 days of first deposit or payment date, insuring the full prepaid non-refundable trip cost and you cancel 2 days or more prior to your departure date. The cancel for any reason benefit usually pays a reduced amount.