7 Common Reasons Why Your Trip Can Be Cancelled

When a planned business trip or family holiday is cancelled, it could be a huge inconvenience. This is especially irksome when you have already booked your flight or have made hotel reservations. This is the reason why getting either a single trip insurance or annual travel insurance, depending on the frequency of your trips, can be a welcome relief. Every standard travel insurance policy covers trip cancellations. It usually reimburses you for any non-refundable deposits or pre-paid travel arrangements.

Here are 7 common reasons why your trip can be cancelled, and what coverage options you have for each of them:

1. Anyone of the following gets injured or has an unexpected illness: travel companion, family member, business partner, or the insured. One of the most common reasons why a trip is cancelled is because of illness or injury. When you get physically hurt or you have a justifiable ailment, your travel expenses will be covered by travel insurance. Before you could claim anything, it should be certified by a licensed physician.

2. When a hurricane or natural disaster occurs. If an unforeseen natural disaster or bad weather such as a hurricane strikes either the place of departure or the destination, a trip is cancelled for safety reasons.

3. When a travel company declares bankruptcy or has a financial default. Another unfortunate reason why a trip could suddenly be cancelled is when a travel supplier such as an airline or travel agency ceases business operations due to its financial situation. This is a legitimate reason covered under trip cancellation, and you would be able to reimburse your pre-paid travel expenses.

4. When acts of terrorism occur and there is mandatory evacuation at the destination. Trips will surely be cancelled when the political situation of a certain destination is placed in jeopardy due to terrorism or other threats to security. Travellers are usually forced to evacuate in situations like these. Travel insurance will provide protection and will cover any expense incurred during compulsory departure.

5. In the event that home or business is damaged, vandalized, or burglarized. If your home or business is damaged due to fire, vandalism or burglary, you will naturally cancel your trip or cut it short. Most policies provide coverage for your pre-trip travel expenses or trip interruption expenses.

6. When a traffic accident occurs prior to the trip. Your trip will most likely be cancelled when an unforeseen road accident occurs when you are on your way to the airport or station.

7. Theft of travel documents such as passport or visa. In cases when essential travel documents such as your passport or visa are stolen, the trip would have to be cancelled and rescheduled until all the documents have been replaced. If this is the case, travel insurance will pay for advanced deposits that you have incurred.

The expenses for a cancelled trip can be reimbursed if there is a valid reason that is explicitly included in a policy. It is also important that the insured provides proper documentation. The best travel insurance for EU residents usually covers these common reasons for trip cancellations.