Trip Cancellation and Interruption Insurance

Trip cancellation and interruption insurance provides financial protection when a trip must be canceled, delayed, or cut short due to unforeseen events beyond the traveler’s control. This coverage helps reimburse non-refundable travel expenses such as flights, hotels, and tour bookings that would otherwise be lost if a covered reason prevents or disrupts your travel plans.

Trip cancellation coverage applies before departure and reimburses prepaid costs if you must cancel your trip due to eligible reasons such as illness, injury, death of a family member, severe weather, or an unexpected job loss. Trip interruption coverage applies after departure and reimburses the unused portion of your trip or additional costs to return home early if a covered event occurs, such as a family emergency or a medical condition requiring immediate return.

Example:

If you have to cancel your vacation because you or a close family member becomes seriously ill before departure, your insurance will reimburse you for non-refundable travel expenses like flights and hotel deposits. If your trip is interrupted mid-travel due to a family emergency, the plan will pay for your early return flight and the unused part of your trip.

What to Watch For:

Review your policy’s list of covered reasons for cancellation or interruption, as not all situations qualify. Most plans require that events be sudden, unforeseen, and outside your control. Optional “cancel for any reason” (CFAR) coverage may be available at an additional cost but must be purchased within a set timeframe. Keep all receipts and documentation for any claim, as insurers require proof of loss and reason for cancellation.