Don’t be stuck with a ticket and no place to go. With the recent wave of airline bankruptcies, travelers need to be cautious and protect their trip investment. Most insurance carriers offer comprehensive plans that cover financial default or bankruptcy of a travel supplier (airline, cruise, or tour company).
Some guidelines to follow when buying your policy:
Make sure your policy includes financial default/bankruptcy coverage. When comparing travel insurance best bet is to look for comprehensive travel package plans, as these will offer the most protection and generally will include financial default (bankruptcy) of a travel supplier.
Make sure your travel supplier is not “black listed” by your insurance carrier. It is important that you review your companies list of approved airlines, cruise lines, and tour companies that are covered under your policy in the event of financial default or bankruptcy.
Don’t wait too long to purchase your policy. Most all travel insurance plans offering financial default/bankruptcy coverage require that you buy the insurance within a specified period (usually 10-21 days) from your first or initial trip payment. Some even require purchase before or within 24 hours of final trip deposit/payment. Best recommendation is to consider buying the insurance in the early stages of planning the trip or soon after initial trip payment is made to be sure all plan benefits apply.
Never purchase the policy directly from the airline or travel supplier since most plans offered fail to include financial default or bankruptcy coverage. Your policy should always be purchased through an independent provider.
Understand your policy’s “Waiting Period” before filing a claim. There is a waiting period from the time of purchase in order for the financial default or bankruptcy benefits to go into effect. It is usually between 7-14 days from your policy’s effective date. This is to ensure the insurance is purchased without prior knowledge of an impending bankruptcy filing by the airline or travel supplier.
Feel free to browse our website for more information on financial default/bankruptcy coverage. If you’d like to compare and receive your free travel insurance quote, please go to our online quote form.