Travel insurance and epidemics

This page was last updated on April 7, 2020. We’ll update this page with resources and information as new details emerge in the world’s response to COVID-19.

The coronavirus has raised a lot of questions for travelers, including whether travel insurance policies cover epidemics and pandemics. It comes down to the insurer you’re with, and when you purchased your policy — but be prepared to comb through your policy documents to understand your coverage.

Do travel insurance policies cover epidemics?

Epidemics are typically excluded under a policy’s “named perils” — which means cancellations and evacuations aren’t covered by your insurer.

Here’s where it gets tricky. If your insurer doesn’t list epidemics as an exclusion, that doesn’t automatically mean you’re covered if you travel during a global health crisis.

When unexpected emergencies or disasters — like epidemics — occur, insurers can categorize them as “known events” or “foreseen events.” So, if you purchase a policy after your insurer declared a known event, you may not be protected.

But if you bought your policy before the event was predicted, your insurer might cover any medical expenses incurred on the trip.

Why you need to read the fine print of your travel insurance policy

When did the coronavirus become a “known event?”

Most insurance companies declared COVID-19 a known event between January 22 and January 24, 2o20.

Which travel insurance companies don’t exclude epidemics?

To find out how travel insurance companies handle claims arising from epidemics, we analyzed policies from 15 major insurers across the US.

We discovered most insurers don’t list epidemics under their policy’s exclusions — though some do exclude losses resulting from “government prohibitions.” In terms of epidemics, this means that if you travel to a country against your government’s advice or warnings, you may not be able to recoup any money.

For the most accurate information, read the fine print of your travel insurance policy.

Which travel insurance companies exclude epidemics?

These insurers list epidemics under their general exclusions — so you won’t be covered if you travel during a global health emergency like the coronavirus.

Are there any exceptions?

Yes. If you have Cancel for Any Reason (CFAR) coverage, you might be reimbursed for your trip if you don’t travel — or don’t want to travel — due to an epidemic.

There are a few caveats to this coverage:

• You need to opt into CFAR rider within 10 to 21 days of your initial trip deposit. It can’t be added to your policy at a later stage.
• It can hike up the price of your policy by up to 50%.
• CFAR coverage typically reimburses travelers for 50% to 75% of their prepaid trip costs — and it’s usually a mix of cash and travel credits.
• It’s not available to residents of New York.

Does travel insurance cover the coronavirus?

What if I’m already traveling?

Review your policy to see if it offers medical evacuation coverage. If it does, your insurer may pay for your medical care as well as safe transport out of the area affected by the epidemic.

What types of cancellations are typically covered?

The details can vary between insurers and states, but most standard travel insurance policies offer predeparture cancellation and trip interruption coverage for these reasons:

• Job loss
• Illness that prevents you from traveling or forces you to return home early
• A death in the family
• A missed flight connection

These events will be specified as covered in your policy documents.

Bottom line

Each insurer has its own guidelines around epidemics. Many travel insurance companies list epidemics under their named perils, so they won’t reimburse you for canceling or changing an upcoming trip due to a health crisis.

Compare travel insurance policies that offer CFAR coverage to protect your prepaid trip costs.