Millions of people decide to travel every year for business and for pleasure. Only a small percentage of those people decide to purchase travel insurance, partially because most people aren’t aware of the option or don’t know how travel insurance works. There are several good reasons to look into insurance, particularly when taking a long business trip, an international vacation or any other potentially high-cost trip.
The basic purpose of a standard travel insurance policy (with trip cancellation coverage) is to reimburse travelers for their insured pre-paid and non-refundable trip costs if they have to cancel their trip due to a covered reason. The covered reasons vary by provider and plan, but depending on the plan, these might include:
Accidental injury, sickness, or death of you, a traveling companion or a family member
Weather events that cause cancellations in travel plans or a cessation of service
Mandatory evacuation ordered by local authorities at your destination due to hurricane or other natural disaster
Strike that causes complete cessation of travel services of your carrier
Bankruptcy and/or default of your travel supplier
Terrorist attacks that occur in your destination city
You or your traveling companion are terminated, or laid off from employment
This type of travel insurance has become quite popular over the years with leisure travelers given the high cost of vacations.