844-554-9099

Travel Insurance Claim Denials

As anyone who travels frequently (or at least, who did so before the pandemic) can attest, travel can be unpredictable for many reasons. Weather, illness, or major world events can derail a trip that has been planned for many months.

Many Travel Insurance Carriers Are Refusing to Pay Out Claims

Naturally, travel insurance is an appealing option for anyone who wants to protect herself against those and other unforeseeable losses.

But travel insurance carriers are doing all they can to avoid paying out these claims, and policyholders are the ones suffering the consequences.

Trip Cancellations Have Increased Due to COVID-19

Having to cancel or postpone travel plans can be stressful for travelers who have been hoping to get away for leisure – such as ski trips – or need to travel for business dealings.

The COVID-19 pandemic has heavily impacted millions of travelers who have had to cancel or postpone travel plans due to the virus’s impact and government travel restrictions.

This has resulted in countless flight cancellations as well as canceled reservations at hotels, resorts, spas, and Vrbo or Airbnb reservations.

Pandemic-Related Travel Insurance Claim Denials Are Widespread

Unfortunately, even for those travelers with the foresight to buy travel insurance, the coverage has provided little solace – or reimbursement. Many travel insurers are simply adopting a company-wide policy not to pay for pandemic-related claims.

In the event your travel insurance claim has been disputed, underpaid, delayed, or denied, don’t give up: you could still be entitled to monetary compensation.

What Do Travel Insurance Policies Cover?

Many forward-thinking people, seeking to protect their investment in their trip, bought travel insurance.

But as with any insurance policy, it’s critically important to read the fine print to determine what the policy actually covers, and what it doesn’t.

Unforeseen events

Most travel insurance policies will protect against “unforeseen” events.

A typical definition of “unforeseen” in an insurance policy is “not known, anticipated or reasonably expected, and occurring after the effective date of the benefit under which the claim is being made.”

This is a key provision, particularly in a COVID-19 world, because insurance companies may deny coverage on the basis that a covered loss was NOT “unforeseen.”

Trip Cancellation and Trip Interruption Coverage

Two of the most common types of coverages include trip cancellation and trip interruption coverage. Both types of policies cover expenses you incur because of the cancellation or interruption, including unused, prepaid trip fees.

Trip Cancellation Insurance

Trip cancellation insurance covers losses incurred if you cancel your trip based on a covered, “unforeseen” event.

Trip Interruption Insurance

Trip interruption insurance covers losses if your trip was cut short, but you were able to complete some of it. This type of coverage may cover the change in fees or transportation expenses incurred in traveling to one’s original or an alternate destination.

What Reasons, or “Covered Events,” Provide Coverage for Trip Cancellation or Trip Interruption?

In concept, trip insurance seems simple enough.

But insurance companies have denied many valid claims, claiming that either they were not “unforeseen” events, or are excluded under the policy.

Quarantine

Perhaps the most common covered event relating to COVID-19 – an issue that is already being litigated heavily across federal courts – is a “quarantine.”

One typical policy specifically provides coverage if

“the Insured or Traveling Companion is hijacked, quarantined, subpoenaed…”

The policy quoted here does not define what a “quarantine” is. But in a different policy, “quarantine” is defined to mean

“the enforced isolation of your or your Traveling Companion, for the purpose of preventing the spread of illness, disease or pests…”

Insurers Selectively Interpret the Meaning of “Quarantine” to Justify Trip Insurance Claim Denials

Common sense, and a plain reading of this definition, would suggest that the multitude of state-mandated stay-at-home orders, border closures, or shelter-in-place orders would qualify as a quarantine under that policy.

Unfortunately, insurance companies are seeking any and all reasons not to pay for these covered claims.

One common argument advanced by carriers is that none of the governmental orders listed above rises to the level of quarantine because they were merely advisory.

Another argument is that, under some policies, a “governmental action” is excluded.

Still another stated reason is that if a traveler booked his or her trip after there was some evidence of the spread of COVID-19, this could not be an “unforeseen loss” providing coverage.

In short, if you filed a claim under a travel insurance policy, and the company denied your claim, you shouldn’t give up. There may still be coverage.

Did You Not Receive a Full Refund?

Unfortunately, insurers may attempt to grossly underpay travel insurance claims related to COVID-19.

Carriers selling travel insurance purchased through booking companies such as Expedia, Vrbo, Airbnb, and many others, are currently having their claims practices investigated in relation to COVID-19.

Contact Raizner Slania to Discuss Your Denied Travel Insurance Claim

COVID-19 has exposed a number of improper insurance practices. This includes travel insurance companies who have failed to honor their contractual commitments to pay legitimate, covered claims.

If your travel insurance claim has been underpaid or denied by these or other such entities, you may be able to pursue litigation in order to receive full monetary compensation.

Contact the attorneys at Raizner Slania, LLP today to start building your case.

Contact Raizner Slania Today & Start Building Your Case

Fill out this form to discuss your case with one of our experienced attorneys or call us at(844) 456-4823.

Δ

Contact Raizner Slania Today & Start Building Your Case

Fill out this form to discuss your case with one of our experienced attorneys or call us at 844-554-9099.

Δ

Our Practice Areas

Our Location

Subscribe To Newsletter

Δ