Trip can­cellation insurance: 6 ways to expect the unexpected

You’ve made your itinerary and planned your vacation down to the minute—but what happens when something beyond your control forces you to change or cancel your travel plans? Nobody can predict the future, which is why trip cancellation insurance is a must-have for travellers. 

Here are 6 situations that could be covered by your insurance:

1. Illness or accident

A family member or travel companion (or even you!) becomes too ill or injured to travel. Or worse yet, a loved one dies. Your trip cancellation or modification coverage may apply in these unhappy situations.

2. Missed departure

Your plane is grounded due to bad weather, the flight is cancelled because of an approaching storm, or your carrier is delayed.

3. Federal government advisories

After you’ve purchased your trip cancellation or modification coverage, or after you’ve increased your insurance amount, the Canadian government issues a travel advisory for your destination or type of trip. You could be able to modify or cancel your trip in the following circumstances:

Advisory issued before your departure date

You need to cancel your non-essential trip because a travel advisory is still in effect 14 days or less before your planned departure.

Advisory issued after your arrival

A travel advisory is issued after you arrive at your destination, and your safety and security are at risk. Your coverage may apply if you change your travel plans and return to your province of residence.

Important: If the Government of Canada advises against all travel to your destination, you must interrupt your trip and return within 14 days of the advisory being issued. If you do not, your coverage will no longer apply.

4. Civic duty

You’ve been selected for jury duty or called to testify in a trial.

5. Involuntary job loss

Just before your trip begins, you involuntarily lose your permanent employment that you’d had with the same employer for more than one year. This means you can’t afford to travel anymore. If this happens, contact your insurer to see if you can be reimbursed for any non-refundable travel expenses.

6. Damage to your home

A disaster causes significant damage to your primary residence just before you leave, and you need to stay home to sort things out.

What about the limitations and exclusions?

It might sound cliché, but it’s a fact: trip cancellation insurance has its limits. Here are a few common examples:

Weather conditions

The forecast is calling for bad weather. It’s disappointing, but your insurance won’t cover you if you cancel your trip.

Personal situation

You and your partner split up just before your trip. Even if your partner was your travel companion, that’s not covered either.

Job situation

Your boss won’t give you the time off, so you have to cancel your trip. Unfortunately, that’s not covered by your insurance. Always make sure your vacation time is approved by your employer before you pay for your trip.

Important documents

It’s the day of your departure and you still haven’t received your passport—or you realize it’s expired when you get to the airport. Unfortunately, this isn’t covered by your trip cancellation insurance.