Cancel for Work Reasons Travel Insurance - 2023 Review
Did you know some Travel Insurance covers Cancellation if you must Cancel For Work Reasons?
Travel Insurance with Cancel for Work Reasons Travel Insurance coverage protects your investment if your position is eliminated or downsized or your boss cancels your vacation.
Typically, this work cancellation trip insurance reimburses 100% of your non-refundable, prepaid costs.
Many comprehensive travel insurance policies include Cancel For Work Reasons policy benefits.
Airline or travel sites that sell trip insurance have weak or no work cancellation benefits, so be careful if you buy a policy from them.
Enjoy our Cancel for Work Reasons Travel Insurance Review.
Basic Trip Cancellation Insurance
Cancel for Work Reasons Travel Insurance Protection is embedded into mid- and top-shelf policies. Usually, you find Work Cancellation benefits in the main list of standard cancellation benefits. Occasionally, a plan may list it separately.
Every comprehensive travel insurance policy includes Basic Trip Insurance Cancellation coverage. Basic Cancellation helps if you must cancel your trip due to tragic, highly unpredictable events. Different travel insurers use slightly different language, but they all typically cover:
- Accident, illness, or death of you, a traveling partner, business partner, or family member
- Jury duty
- Legal appearance
- Traffic accident en route to the airport
- Death or hospitalization of your host at your travel destination
- Job loss
- Bankruptcy of your travel provider
We use Travel Insured International Worldwide Trip Protector to illustrate policy language for the following situations.
Benefits will be paid, up to the Maximum Benefit Amount shown in the Confirmation of Benefits, to reimburse You for the amount of the Published Penalties and unused non-refundable Prepaid Payments You paid for Travel Arrangements when You are prevented from taking Your Trip.
Reimbursement of Miles or Reward Points
If You have Trip Cancellation Benefits under this Policy and cancel Your Trip for a Covered reason, benefits will be paid up to the Maximum Benefit Amount of $250 as shown in the Confirmation of Benefit for any penalty cost of putting the miles or reward points back in the account they were removed from. This will not duplicate any benefits paid under the Trip Cancellation Benefit and is subject to the same General Exclusions and Limitations.
Note that the only Airline Mile benefit comes from costs to re-credit your airline miles or reward points. You cannot insure the value of the miles, just the cost of putting the miles back in your account if the airline/reward organization allows it.
Your, Your Family Member’s, Your Traveling Companion’s, Your Traveling Companion’s Family Member, Your Business Partner’s or Your Business Partners Family Member’s death, which occurs while You are on Your Trip;
That’s pretty reasonable, we think, but what is a Family Member? How broad is the description? What is a Traveling Companion or Business Partner in travel insurance?
Here we go:
Family Member, Traveling Companion, Business Partner
“Family Member” means any of the following: Your or Your Traveling Companion’s legal spouse (or common-law spouse where legal), legal guardian or ward, son or daughter (adopted, foster, step or in-law), brother or sister (includes step or in-law), parent (includes step or in-law), grandparent (includes in-law), grandchild, aunt, uncle, niece or nephew or Domestic Partner.
That’s a pretty broad and inclusive set of relevant people, which seems fair.
“Business Partner” means an individual who (a) is involved in a legal general partnership with You and (b) is actively involved in the day to day management of Your business.
“Traveling Companion” means a person or persons whose names appear with Yours on the same Travel Arrangements and who, during Your Trip, will accompany You.
Some policies like Travel Guard, define a Traveling Companion differently:
“Traveling Companion” means a person or persons with whom the Insured has coordinated travel arrangements and intends to travel with during the trip. A group or tour leader is not considered a traveling companion unless the Insured is sharing room accommodations with the group or tour leader.
Your, Your Family Member’s, Your Traveling Companion’s, Your Traveling Companion’s Family Member, Your Business Partner’s or Your Business Partners Family Member’s covered Sickness or Injury which: a) occurs while You are on Your Trip, b) requires Medical Treatment at the time of interruption resulting in medically imposed restrictions, as certified by a Legally Qualified Physician, and c) prevents Your continued participation on Your Trip.
Other Covered Reasons
For the Other Covered Reasons listed below; provided such circumstances occur while coverage is in effect.
“Other Covered Reasons” means:
You or Your Traveling Companion being hijacked, quarantined, required to serve on a jury (notice of jury duty must be received after Your Effective Date), served with a court order to appear as a witness in a legal action in which You or Your Traveling Companion is not a party (except law enforcement officers);
Important to note, we will see the term Effective Date throughout the policy document:
Effective Date and Termination Date
When Coverage for Your Trip Begins: Coverage Effective Date
Trip Cancellation: Coverage begins at 12:01 a.m. on the day after the date the appropriate premium for this Policy for Your Trip is received by the Company or its authorized representative prior to the scheduled departure time on the Scheduled Departure Date of Your Trip. This is Your “Effective Date” and time for Trip Cancellation.
The take away is that you are not covered the moment you pay for your policy. The policy goes into force just after midnight the day after the insurance carrier receives your premium.
Travel Delay: Coverage is in force while en route to and from the Covered Trip.
All Other Coverages: Coverage begins when You depart on the first Travel Arrangement (or alternate travel arrangement if You must use an alternate travel arrangement to reach Your Trip destination) for Your Trip. This is Your “Effective Date” and time for all other coverages, except Trip Cancellation and Travel Delay.
When Coverage For Your Trip Ends – Coverage Termination Date:
Trip Cancellation: Your coverage automatically ends on the earlier of: the date and time You depart on Your Trip; or the date and time You cancel Your Trip.
All Other Coverages: Your coverage automatically ends on the earlier of: 1) the date Your Trip is completed; 2) the Scheduled Return Date; 3) Your arrival at Your return destination on a round-trip, or the destination on a one-way trip; 4) cancellation of Your Trip covered by this policy.
Extension of Coverage: All coverages under this policy will be extended if Your entire Trip is covered by this Policy and Your return is delayed due to unavoidable circumstances beyond Your control. This extension of coverage will end on the earlier of the date You reach Your originally scheduled return destination or 7 days after the Scheduled Return Date.
The policy extension is pretty cool. If a covered interruption or travel delay prevents your return home as scheduled, the travel insurance can cover you for up to seven additional days.
We recommend you call or send the travel insurance carrier a brief email notifying them if something delays your return. Then, if you need further assistance returning home, they will already be aware of the circumstances.
Natural Disaster and Hurricane
Your or Your Traveling Companion’s primary place of residence or destination being rendered uninhabitable and remaining uninhabitable during Your scheduled Trip by fire, flood, burglary or other Natural Disaster. Your destination is uninhabitable if: (i) the building structure itself is unstable and there is a risk of collapse in whole or in part; (ii) there is exterior or structural damage allowing elemental intrusion, such as rain, wind, hail, or flood; (iii) immediate safety hazards have yet to be cleared such as debris on roofs or downed electrical lines; or (iv) the rental property is without electricity or water. Benefits are not payable if a storm, snow storm, blizzard or hurricane is named on or before the Effective Date of Your Trip Cancellation coverage.
Cancellation of Your Trip within 48 hours of Your Scheduled Departure Date and time if Your Trip destination is under a hurricane warning issued by the NOAA National Hurricane Center, provided the cancellation of Your Trip occurs more than 14 days following Your Effective Date of coverage for the Trip Cancellation Benefits.
Yet another reason why it makes sense to buy Travel Insurance earlier rather than later. You need to have your travel insurance in place at least 14 days before a hurricane warning at destination will create a refundable event.
While the Worldwide Trip Protector and Trip Protector Plus plans list hurricanes separately and generously, other policies do not. In those cases, it’s a huge “gotcha” for people traveling to hurricane-prone areas.
If the storm receives a name before you buy your policy, the policy cannot pay cancellation benefits. Often, hurricanes have names several weeks before they make landfall in the USA when they are less threatening tropical storms.
You can see why it makes sense to get your travel cancellation policy in place sooner rather than later.
Every hurricane season, we speak to countless people who cannot get hurricane travel insurance for a storm that is just about to hit their destination. It’s simple. By definition, travel Insurance provides financial protection for unforeseen events. It cannot cover events that we are pretty sure are going to happen. No insurance works this way. In other words, you cannot insure the house when it’s on fire.
One addition to Natural Disaster coverage:
Your or Your Traveling Companion’s place of employment is rendered unsuitable for business due to fire, flood, burglary or other Natural Disaster and You and/or Your Traveling Companion are required to work as a result.
Visa or Passport Theft
A documented theft of passports or visas.
Make sure you receive a police report if someone steals your passport or visa.
Note that travel insurance offers no compensation if you do not receive your passport or visa(s) in time for a trip. The only time travel insurance can protect that risk is with Cancel for Any Reason insurance. CFAR pays a 75% benefit and is only available on a few, higher-priced policies.
Strikes and Accidents
Unannounced Strike that causes complete cessation of services for at least 24 consecutive hours of the Common Carrier on which You are scheduled to travel.
You or Your Traveling Companion being directly involved in a traffic accident, substantiated by a police report, while en route to Your scheduled point of departure.
Inclement weather that causes complete cessation of services for at least 24 consecutive hours of the Common Carrier on which You are scheduled to travel;
You or Your Traveling Companion or Your Family Member is in the military and called to emergency duty for a national disaster other than war.
A Terrorist Incident that occurs within 30 days of Your Scheduled Departure Date in a city listed on the itinerary of Your Trip.
Bankruptcy – But not of a Travel Agent
Bankruptcy or Default of an airline, cruise line, tour operator or other travel provider (other than the Travel Supplier, tour operator, travel agency, organization or firm from whom You purchased Your Travel Arrangements) causing a complete cessation of travel services more than 14 days following Your Effective Date. Benefits will be paid due to Bankruptcy or Default of an airline only if no alternate transportation is available. If alternate transportation is available, benefits will be limited to the change fee charged to allow You to transfer to another airline in order to get to Your intended destination. This benefit only applies if the policy has been purchased within 21 days of the date Your initial deposit/payment for Your Trip is received;
Please note that if your travel agency goes bankrupt or out of business, then you have no coverage. This definition includes small local travel agencies and large, online agencies like Expedia. Be sure you know whomever you write a check to when booking travel.
Sick Family at Destination
Your family or friends living abroad with whom You are planning to stay are unable to provide accommodations due to life threatening illness, life threatening injury, or death of one of them.
Mandatory evacuation ordered by local government authorities at Your Trip destination (or official public evacuation notices or recommendations without a mandatory evacuation order issued) due to adverse weather or Natural Disaster.
Required to Work – Vacation Revoked
This is the first of the Cancel for Work Reason Travel Insurance Benefits:
You, Your Traveling Companion or a Family Member traveling with You is required to work during the trip. A written statement by an unrelated company official and/or the human resources department demonstrating revocation of previously approved time off will be required. This provision is not applicable to temporary employment, independent contractors or self-employed persons.
To take advantage of this CFWR benefit, you need HR or a company officer to write a letter.
Second, some policies only include Cancel for Work Reasons Travel Insurance if you purchase the plan within the time sensitive period, usually 14-21 days.
Although Worldwide Trip Protector does not have a time sensitive requirement for CFWR coverage, always check your plan document. On the upside, time sensitive requirements are rarely an issue for travelers who have simple travel arrangements like a flight.
We often see Cruise passengers make small trip deposits a year or more before their sail date. The best time to set your travel insurance in place is when you make the Initial Trip Deposit or Payment.
If you are not sure whether the plan you want covers Cancel For Work Reasons, feel free to contact us and we can help you.
Involuntary employer termination or layoff of You or a Traveling Companion. Employment must have been with the same employer for at least 1 continuous year.
Here is the second Cancel for Work Reasons Travel Insurance protection. If you are laid off or terminated without cause and worked for at least one year, it’s a covered cancellation reason.
Military Leave Revocation
Revocation of Your or Your Traveling Companion’s previously granted military leave or re-assignment. Official written revocation/re-assignment by a supervisor or commanding officer of the appropriate branch of service will be required.
Make sure your Military Supervisor or CO can write the letter on your behalf. We think of this as Cancel for Work Reasons Travel Insurance for Military.
A permanent transfer of employment of 250 miles or more by You or Your Traveling Companion by the employer from whom You or Your Traveling Companion are employed onYour Effective Date which requires Your or Your Traveling Companion’s principal residence to be relocated;
You or Your Traveling Companion are directly involved in the merger of Your employer or the acquisition of Your employer by another company. You, Your Traveling Companion or Family Member cannot be a company owner or partner.
Cancel for Work Reasons Travel Insurance – Exclusions & Solutions
What if you are self-employed, a small business owner, or a company partner?
Unfortunately, Cancel For Work Reasons only apply to rank-and-file employees of companies.
While Cancel For Work Reason Travel Insurance doesn’t make sense for those circumstances, we recommend you look at Cancel for Any Reason coverage.
CFAR partially solves the coverage gap for self-employed travelers or business owners.
CFAR allows you to receive up to 75% if you must cancel for work. Although it is not as generous as Cancel for Work Reasons, it solves the coverage gap some people face with Cancel for Work Reasons.
Cancel for Work Reasons Travel Insurance – Airline & Travel Sites
As always, you should check the small print of any airline policy that you consider.
Every Airline Travel Insurance plan we’ve seen offers limited or no Cancel For Work Reason benefits. No Airline Travel Insurance offers Cancel For Any Reason.
You will always find better coverage at a lower price if you spend a few minutes checking your options on the Travel Insurance Marketplace.
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To sum up, if you want to buy Cancel for Work Reasons Travel Insurance, do it early. You can always return your unused policy within the ‘Free Look’ period (10-14 days) and collect a refund.
But if you want travel protection, get it sooner rather than later. That way, you have immediate financial protection in the event of a covered cancellation.
This article has been written for review purposes only and does not suggest sponsorship or endorsement of AARDY by the trademark owner.
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