Am I covered if my tour operator/airline goes bankrupt or becomes insolvent?

It’s unfortunate, but it happens: Your transportation carrier (airline, cruise line, etc.) files for bankruptcy or completely ceases operations. If this causes the cancellation of your trip and your spa-cation at Iceland’s Blue Lagoon is suddenly in the red, World Nomads’ travel insurance plans for Canadian travellers offers some protection.  

What’s covered by my travel insurance if my travel provider goes bankrupt?

To be covered under a World Nomads plan, the travel supplier’s bankruptcy or financial default must have happened more than 14 days after your policy purchase date.

As a first step, you should get in touch with your travel provider directly to see if you can get a refund and for help in making alternative arrangements. In many cases, partner airlines can accommodate passengers of the carrier that went bankrupt. Try to gather as much information as possible and keep a record of your correspondence in case you need to submit a claim.

If you haven’t left on your trip yet and your travel supplier’s bankruptcy causes your trip to be cancelled, and you’re unable to recover your non-refundable, prepaid travel expenses, you may be eligible for reimbursement under the Trip Cancellation coverage of your World Nomad’s travel insurance policy. You will need to notify us right away to start a claim. You will need to provide proof of all non-refundable, prepaid deposits or payments and must have documentation that shows you weren’t able to get a refund or equivalent compensation (a hotel credit, for example) from any other source.

What’s not covered by travel insurance?

World Nomads travel insurance does not cover everything. For example, the plan doesn’t cover:

  • When a travel provider is still running or offering services even if a bankruptcy has been declared.
  • When you’ve been offered alternative arrangements by the travel provider or other source.
  • If you are already on your trip and the carrier goes bankrupt (there is no coverage for Trip Interruption or Trip Delay). In this case, you need to work with the carrier to figure out how to get to your next destination.
  • Concerns about a potential bankruptcy.

When purchasing a trip with a travel supplier you’re unsure about, you should make sure that they are not on an alert list. It’s also a good idea to do a quick internet search to see if there are any concerning news articles or bankruptcy notices or warnings. If there are, the travel suppliers’ bankruptcy or financial default would be considered a “known event” and you would not be eligible for coverage under your travel insurance policy. If you’re unsure about your travel supplier, you can also contact our customer service team.

This is only a summary of coverage and does not include the full terms and conditions of the policy.  It is important you read and understand your policy as it contains benefits, conditions, exclusions and pre-existing condition exclusions.  If you do not understand your coverage, or if you have questions about your coverage, just ask us.


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