Am I Covered If My Travel Insurance Supplier Goes Bankrupt?

At last, options for travel are beginning to open up, and those with wanderlust can resume excursion planning. Although, with the travel industry in recovery mode, questions arise in travelers’ minds regarding financial risk and how to best hedge against it.

One concern relates to travel insurance. What happens if a traveler purchases a travel insurance policy, but before the trip is taken, the travel supplier declares bankruptcy? What protections are in place in this situation for the consumer? Dan Drennen, Director of Sales and Marketing at Travel Insurance Center^® shares his insights on this relevant topic.

Per Drennen, many travel protection plans do provide coverage for supplier bankruptcy if certain conditions have been met. Many plans state that bankruptcy protection is in place if you have purchased the insurance within the time sensitive window from your initial deposit/payment date (usually within 10 to 21 days, depending on the plan).  Then a waiting period is also instilled (typically 10 to 14 days) before this benefit applies.

Dan goes on to emphasis that the purchase by time-sensitive qualification period will vary, depending on the policy selected. Therefore, it’s important to read in detail, the policy language on any plan you are considering.

For more information on this topic, if you have any travel insurance questions or if you’re in the market to purchase travel insurance, the Travel Insurance Center is here to assist. Reach out at 1.866.979.6753 or via the Travel Insurance Center website. A Travel Insurance Expert™ can analyze all options regarding your specific situation. All Travel Insurance Experts are licensed, qualified agents and always base recommendations on your needs and budget. Contact them today!