Am I covered if my tour operator/airline goes bankrupt or becomes insolvent?

Travel insurance offers some protection for Canadian travellers if their tour operator or airline files for bankruptcy before setting off on their trip. To be covered under a World Nomads plan, the travel supplier’s bankruptcy or financial default must have happened more than 14 days after you purchased a travel insurance plan .

If you haven’t left home yet and your travel supplier’s bankruptcy causes your trip to be cancelled (and you’re unable to recover your non refundable, pre-paid travel expenses)you may be eligible for reimbursement under the Trip Cancellation coverage of your plan.

If it does happen, get in touch with your travel provider directly to see if you can get a refund and ask for help in making alternative arrangements. In many cases, partner airlines can accommodate passengers of the carrier that went bankrupt. Gather as much information as possible and keep a record of your correspondence in case you need to make a claim.

If you are already on your trip and the carrier or tour operator goes bankrupt, there isn’t coverage for Trip Interruption or Trip Delay.

This article is for general informational purposes only. It is not intended to provide medical, legal, insurance, or travel advice and provides only a general summary of certain features that may be available under applicable travel insurance policies. Coverage is subject to the specific terms, conditions, limitations, exclusions, and pre-existing condition provisions of the applicable insurance policy. In the event of any inconsistency between this article and the wording of any insurance policy, the policy wording shall govern and take precedence. 

It is important that you read and understand your policy before travelling. If you have questions about your coverage or are unsure how your policy applies to your circumstances, please contact us for clarification. 

 


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