We were recently asked whether trip cancellation coverage provides reimbursement if an airline cancelled flights due to a hurricane and then subsequently ran out of seats?
Unfortunately, it does not. Travel insurance plans typically include language like this (from Travel Guard’s Platinum plan description of coverage):
“Benefits will not be provided for any loss resulting (in whole or in part) from:
(a) travel arrangements canceled by an airline, cruise line, or tour operator”
Which makes sense, if you think about the fact that the travel insurance company wants to limit their losses as well.
To answer the question, the airline canceled their flights due to severe weather, so their responsibilities are limited to getting you on the next available flight. If the flight is a day or more later, the carrier may provide accommodations or meal vouchers, but it’s entirely voluntary. If that airline has no seats for you on later flights, it is again a problem with the airline and you are subject to the rules governing air travel.
While it may not seem fair, those are the laws and rules.
When travel insurance coverage would kick in
- When severe weather causes all services to stop for a minimum number of hours (usually 24), but remember that travel insurance only provides reimbursement for non refundable losses. So, if your airline has to cancel flights, but they give you a full price voucher for future travel, you won’t be able to make a claim for the flight cancellation because that would, in essence, be double repayment because you received compensation from the airline.
- When a labor or union strike prevents you from taking your trip. The strike must be unannounced when you make your policy purchase and there is a minimum number of hours (usually 12-24) that services must be stopped before coverage applies.
If the airline bumps a passenger due to overselling, there are new passenger compensation rules to cover that situation.
For more information, see What the airlines owe you when a Missed Connection occurs.
