QuoteWright Travel Insurance Buyers Guide

Travel Supplier Default/Bankruptcy Coverage

Many plans with trip cancellation/interruption coverage include as a covered reason cancellations or interruptions caused by an airline, cruise line, or tour operator default(bankruptcy).

Default Coverage -  This coverage provides protection if the trip is cancelled or interrupted due to the unforseeable bankruptcy of an airline, cruise line, or tour operator you are using.  Not all policies offer default coverage- most plans require you to buy the insurance within a short period of time from your initial trip payment (in addition to other requirements- see below) while with other plans it is a standard benefit included in the policy. 

Keep in mind that  some companies won't apply this coverage if you purchased the travel insurance policy directly from the supplier you purchased your trip from, which is a good reason to purchase the insurance from a third party (such as us).

Also some companies have travel supplier restrictions on which ones that they will or will not cover.

How to Qualify Financial Default Coverage (for those plans that are time sensitive)

As mentioned above, not all plans offer default coverage.  For those plans that provide the coverage as a time sensitive benefit, here's the general requirements they have:

  • buy the insurance within 10 to 30 days (varies by policy) of your initial travel deposit
  • insure for the full cost of your trip
  • check the travel supplier list to see if it applies.

Please note that the above is a general guideline.  You always want to look at the specific requirements on the policy you're viewing.

Start Your Quote for your next Trip here

Click here to find your plan

Click for the BBB Business Review of this Insurance Consultants in East Hartford CT Thawte seal - click here to go to secure page

FAQ's

Question:  Do all trip cancellation plans cover "default" or  bankruptcy of a travel supplier?

Answer:  No.  Not all plans offer "default or bankruptcy" as a covered reason under trip cancellation or interruption coverage. 

Question:  Does coverage have to be purchased within a specific time period following my first trip payment to be eligible for coverage?

Answer:  Yes, in most cases, coverage has to be purchased within the required time period following the first trip payment in order to be eligible for default coverage.

Question:  What does it mean when a plan says "which occurs more than 14 days following Your Effective Date"?

Answer:  Some plans have a waiting period before the default coverage goes into force following the effective date of the trip cancellation coverage.   Trip cancellation usually becomes effective the day after purchase.  In the above case the basic trip cancellation coverage would become effective the day after purchase and the default coverage would become effective 14 days later.


Recommended Travel Insurance Plans

The following are the top 3 plans out of 11 available to you. All coverage limits and premiums are in US $.
Company & Plan Name Travel Supplier Default/Bankruptcy Total Premium

Travel Guard

Silver

See Details
Available if purchased within 15 days of initial trip payment

See Policy Wording
Get A Quote

Travel Guard

Gold

See Details
Available if purchased within 15 days of initial trip payment

See Policy Wording
Get A Quote

Travel Insured International

Worldwide Trip Protector

See Details
Available if purchased within 21 days of initial deposit
14 day waiting period
See Policy Wording
Get A Quote
Copyright 2017 QuoteWright.com