MINNEAPOLIS, May 4, 2020 /PRNewswire/ -- According to a recent report released by the U.S. Travel Association and Oxford Economics, the COVID-19 pandemic will likely cause the travel industry to suffer financial losses nine times worse than 9/11.
Yonder Travel Insurance, a comparison site for travel insurance, has seen a dramatic increase in calls requesting information regarding bankruptcy or financial default coverage as a result. The top two questions being asked are answered below.
If my travel supplier goes bankrupt, will I recoup my trip expenses?
Like all other travel insurance benefits, you must meet the requirements of the travel insurance policy to qualify for coverage. Most travel insurance policies that include bankruptcy, financial default or financial insolvency as a covered event under trip cancellation require the bankruptcy or financial default event to occur at least 10 days after the effective date of the policy.
Another important thing to note is that the company declaring bankruptcy must be your "travel supplier". This is often defined as a tour operator, cruise line or airline that has provided some type of travel service for your trip. A travel agency would likely not qualify as a travel supplier as they are not directly responsible for providing the land, air or sea transportation services.
Is bankruptcy and/or default coverage included with every travel insurance policy?
"About 80% of the policies we sell on Yonder include or offer some form of bankruptcy or financial default coverage," says Terry Boynton, president and co-founder of Yonder. "It's important to note that half of those policies are only available to purchase within a specific time frame from your initial trip deposit or payment date."
Travel insurance policy terms are very clear on what benefits will be paid and under what circumstances. If you meet the requirements of the policy, this coverage could end up helping recoup your trip investment.
The experts at Yonder Travel Insurance have poured over hundreds of policies from the best travel insurance providers in the US to provide the best travel insurance recommendation for how YOU travel. Run a quick quote and compare travel insurance policies for your next trip using our instant quote tool. Yonder donates meals to vulnerable children in need with each policy sold so you can travel well, and do well, when you go Yonder.
Terry Boynton, Co-Founder & President
SOURCE Yonder Travel Insurance