Unless you haven’t had the television on today than you probably have heard about the fine job that British security did in thwarting a terrorist plot to blow up USA bound planes from England. As a result the terror level has been raised for flights between the two countries and new rules have been effected concerning what you are allowed to carry on to the plane.
Many questions were raised today from concerned travelers and from travel and consumer reporters about today’s events and how coverage applies. Things are still some what unsettled but generally speaking there are two areas of travel insurance plans that might apply: trip cancellation and interruption and travel delay. In most cases these coverages are “name peril” coverage where the specific reason for the loss must be one that is listed by the insurance company as being covered.
In the case of the first coverage, trip cancellation and it’s cousin, trip interruption, the only listed reason that comes close is the one found in most plans that says if a terrorist incidence occurs in a city on your itinerary within 30 days of your departure date than you may cancel or interrupt your trip. It appears from what we’ve seen and read that today’s developments would not be considered an “incidence” because the plot was thwarted and therefore would not be covered by the terrorism clause found in most travel insurance policies as a reason to cancel or interrupt your trip. There are a couple of plans that are currently available that cover “cancel for any reason“. If a traveler had purchased these plans than they might be able to cancel and receive a partial refund.
The second coverage is travel or trip delay. This coverage generally provides for additional living expenses if you are delayed during your trip due to a specific reason listed in the policy. Most of the policies include delays that are “carrier caused delays” and if you are delayed because your carrier cancelled your trip or postponed it because of the current situation than coverage would probably apply depending on the plan that you’ve purchased.