We were recently asked whether travel insurance plans offered the same level of coverage for those working for employers versus the self-employed, so we decided to do some research and find out.
Unfortunately, the answer was not always positive for self-employed workers.
Coverage that relates to work is isolated to the following:
Specifically, some travel insurance plans allow for trip cancellations or trip interruptions due to involuntary termination or layoff. Here’s how travel insurance covers job loss.
The wording we found in for pre-departure trip cancellation benefits in the Travelex Travel Select plan, for example, reads like this:
15. your involuntary termination of employment or layoff and was not under your control. You must have been continuously employed with the same employer for 1 year prior to the termination or layoff. This provision is not applicable to temporary employment, independent contractors or self-employed persons;
Notice the highlighted text? This plan does not cover pre-departure trip cancellations if you are self-employed. We found similar text in CSA’s Custom Luxe plan:
j. your involuntary termination of employment or layoff, which occurs more than 15 days after your effective date of coverage and was not under your control. You must have been continuously employed with the same employer for 1 year prior to the termination or layoff. This provision is not applicable to temporary employment, independent contractors or self-employed persons;
Some plans do cover the self-employed
We did find at least two Travel Guard plans, however, that allow for trip cancellations if you’re required to work and self-employed. The description of coverage reads like this:
In the situation of selfemployment, proof of self-employment and a notarized statement confirming that the Insured is unable to travel due to his or her job obligations will be required;
You can find this coverage in the Platinum and Gold Travel Guard plans (and perhaps others).
Self-employed and in doubt?
Not all travel insurance plans allow for trip cancellations or interruptions due to work-related reasons, and not all travel insurance plan certificates include ‘self-employed persons’ in their list of exclusions, so it’s crucial that you check your travel insurance certificate and understand the coverage limits and exclusions.
A call to your plan’s travel assistance services hotline will help you determine whether you – as a self-employed person – have the coverage you expect. Remember to call within the plan’s free-look review period in order to have time to cancel the plan for a refund.
