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Travel insurance may not cover "travel bans"

In light of the COVID-19 concerns, and rapidly evolving workplace and governmental disaster planning, I reviewed the "Covered Reasons" under which my travel insurance would offset unrecovered costs and learned that "travel bans" are NOT a covered reason for trip cancellation. The closest thing I could find in my Travel Insured International agreement was the "Natural Disaster" clause which unfortunately is limited to "a flood, hurricane, tornado, earthquake, mudslide, tsunami, avalanche, landslide, volcanic eruption, fire, wildfire or blizzard that is due to natural causes". An email to the company confirmed this. The response was: "The corona virus is not an insured reason under the policy unless you’re contracted with the virus as we do not cover travel alerts, warnings, advisories, nor bans."

Travel Insured seems to talk around the ban issue on their current coronavirus FAQ. Beware if you plan to buy from this company.

Bottom line: Read your policy carefully if you are hoping that buying a travel insurance policy will help offset losses due to coronavirus.

Posted by
4869 posts

A travel ban is not covered in my Nationwide "Essentials" policy - their basic individual plan.

It covers my illness and my own quarantine in terms of trip interruption benefits, paying for prepaid and nonrefundable costs. It does not cover any additional expenses for quarantine unless I personally am sick.

Posted by
2649 posts

I have an annual travel insurance policy,I got an email from them a few days ago saying that I would be cover for any non-refundable travel, hotel bookings and excursion etc bookings that have been made before any bans come into place.
I have a trip to Prague in May booked, non refundable flights and non refundable hotel, but as I have booked in several months ago and at the moment no ban in place I will be covered if a ban on travel does take place.
So yes, read the policy carefully and read any emails you may get from your travel insurance company.

Posted by
32247 posts

I have read the "Terms & Exclusions" in my travel insurance policies, and they clearly state that no coverage will be provided in cases where a person chooses to visit an area that is listed as Avoid ALL Travel on the Government of Canada website. I can't remember what their position is on areas that are listed as Avoid Non-Essential Travel (which is the case for Italy at the moment).

Posted by
4174 posts

I got my Travel Guard policy within 15 days of my first trip payment as I usually do so that the Pre-existing Condition Waiver will be included. At that time (November 25, 2019) I added the upgrades for Medical Coverage and Evacuation & Repatriation.

The initial cost was based on my RS tour deposit, airfares and prepaid hotel payments. Within 15 days of paying the balance of the RS tour cost, I added it to the total insurance coverage and paid for that.

Needless to say, I've been watching what Travel Guard has to say about their coverage. The details have gotten much longer over time. This is what they have on their website now and where they will be putting newer information in the future:

Posted by
567 posts

My Allianz policy will not cover Covid 19 or any other flu outbreak. Just interruption within my travel experience, death of loved one, etc......but not a man made health outbreak. My air is with Delta and that is separately insured so there’s no issue there.

Posted by
7842 posts

If your airline cancels your air flights to the tour location, would the insurance pay? Of course, the cancellation may be because of a travel ban.