Policies will cover cancellation if they test positive for coronavirus and are unable to travel, or if they are ordered to quarantine due to suspected Covid exposure.

New policies also mitigate any Covid illness during a trip, or any circumstance in which they are told by the Foreign Office to return home.

Emergency medical, and related expenses, are included, and any additional accommodation and transport costs incurred due to an extended trip caused by quarantine abroad will also be covered.

This is in the event the customer has been specifically asked to isolate either because they have tested positive for Covid-19 or been in contact with someone who has.

However, a new pandemic exclusion has been added to the policy which excludes cancellation claims for Covid-19 or other pandemics in the event the government imposes lockdowns and restrictions, or cancellations are made by airlines and tour operators.

These terms also apply to existing customers for any new trips booked after their next renewal, effective from Monday (14 September).

Heather Smith, managing director of LV= GI Direct business, said: “For the past few months, we’ve been focused on supporting our existing travel insurance customers, but I’m delighted we can also welcome back new customers to LV= GI.

“The COVID-19 pandemic has created volatility and uncertainty for everyone, not least in the travel industry where things are changing all the time, but we are confident within our new policy terms that there is sufficient cover in place to meet the needs of our customers and protect them against personal impacts outside their control.”