Ask the experts
Martin Alcock
Alan Bowen
Debbie Flynn
Basia Kolosinska
Claire Steiner
Jonathan Wall
Are customers covered by their travel insurance if they book now for future travel?
Cath PuseyRather than start a new thread, I hope it's OK to add in here as it is insurance related?
As a tour operator, we are encouraging our clients to rebook their holidays, but quite a few are reluctant to commit to a new booking as they have been advised by their insurers they won't be covered for COVID19, so if they get the virus before travel and then can't travel they wouldn't be covered for cancellation, or if they got the virus whilst away, their medical expenses would not be covered.
Does any have any suggestions as to how we could overcome this, or know of any insurance companies who might help in this situation?
I think this is something the trade and insurance industry need to address urgently.
Thanks in advance.
Madeleine BarberHi Cath,
Farina advises you to get in touch with the insurers to be certain and Alan has suggested the following:
"As far as I know there are no insurers who will cover Covid-19 at present. If possible, and the customer already has cover, it may be best to see if it can be transferred to the new holiday. This would mean if it had cover in the first place, it would continue under the original terms."
Hope this helps!
Cath PuseyThanks for coming back to me, and I appreciate you checking this. Unfortunately the customers affected have not been able to get cover under the original terms of their policies, in several instances. It's very frustrating for them and us!
Madeleine BarberThanks Cath, it is indeed a frustrating environment out there at the moment!
I've also had this response from Clifford Flack at Cork Bays & Fisher, in case it helps to hear another POV:
"I know from press coverage that a number of insurers have either suspended or stopped offering any new travel insurance sales due to Covid-19 and the significant effect this has had.
"I saw this on MSE website:
If you have a holiday booked but no insurance, then sadly it's likely too late. We don't know of any policies offering cover for coronavirus-caused cancellations and claims, and even if you have an annual policy, most are now excluding coronavirus cover for newly-booked trips.
"I know insurers will not be looking to extend the scope of coverage to include a “known event”."
Jane TippenThank you both for your insight. It is indeed a difficult question!
Best regards
Jane
Farina Azam from Kemp Little also adds:
"A tricky question! It will depend on the circumstances. Provided the customer travels when the FCO advisory against international travel has been lifted, the customer should be covered. However, there might be additional restrictions which apply to the customer’s chosen destination – whether by the FCO or the insurer (possibly as a result of local restrictions in destination). Therefore, the customer will need to check with the insurer, both at the time of booking and again before travel."
Alan BowenThere is no simple answer, some insurers are happy to carry forward the policy to a later date with the original levels of cover, some will do so but with no cover for CoVid 19 since it is now a known event and some will not continue cover at all and expect customers to book new cover. Customers must be told to contact their relevant insurer and check.
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