Travel Insurance for Employment Layoff

What is Employment Layoff Insurance?

Employment Layoff Insurance, also known as Job Loss Insurance, is a travel insurance benefit that provides coverage in the event of involuntary layoff or termination of employment.

Some comprehensive travel insurance policies include this benefit as part of their cancellation coverage. If you lose your job before or during your trip and need to cancel your plans, you may be eligible for reimbursement of your prepaid, non-refundable travel expenses.

Not all terminations are covered by travel insurance, and exclusions, premiums, and coverage limits will depend on the specific policy and provider you choose.

FAQs: Employment Layoff Insurance

What Does Employment Layoff Insurance Cover?

Employment Layoff covers up to 100% of your prepaid, non-refundable expenses if you, or your travel companion, need to cancel a trip due to an unexpected termination of employment.

Most insurance plans have eligibility requirements that must be met for coverage to apply, which may include:

• Full-Time Employee: Coverage does not usually apply to seasonal, part-time, self-employed, or short-term employees.
• Minimum Employment Length: Most plans require a minimum length of employment, typically between one to three years.
• No Fault: The termination must be through no fault of your own, such as mass layoffs or budget cuts.
• Waiting Period: Most plans will only cover terminations that happen after a set amount of days after your policy’s effective date, typically 14-30 days.

Full coverage information, as well as any exclusions or limitations, can be found in a policy’s Certificate of Insurance.

What Happens If I Get Fired While On Vacation?

Employment termination can happen at any time, even when you’re on vacation. Policies with the Employment Layoff will include Trip Interruption coverage, which will reimburse your unused travel expenses if you need to return home as a result of your termination. Some Trip Interruption plans will also provide additional coverage for additional costs you may incur to book new travel arrangements back home.

Please be aware that coverage and eligibility requirements for this benefit differ by policy.

Looking for a policy with Employment Layoff coverage?

Enter your trip information on our custom quote form. Once you receive your results, select the Employment Layoff filter to find the best policy for your trip with the coverage that you need.