HOW COVID-19 CAN IMPACT CERTAIN INSURANCE POLICIES - TRAVEL INSURANCE
Inevitably, COVID-19 will have an effect on elements of your personal insurance cover. We answer some of the questions you may have with regards to working from home and travel.
Travel insurers are committed to supporting their customers through this unprecedented global event and have made six pledges to customers. These are outlined by the Association of British Insurers below, but here are answers to common questions travel policy holders may have.
Why are insurers stopping selling some policies?
• Insurers are carefully monitoring the fast-moving developments in the coronavirus outbreak, and some have stopped selling travel insurance to new customers while others have stopped covering cancellations or disruption related to the Coronavirus. Insurance is based on assessing the possibility of an event occurring.
CORONAVIRUS – INFORMATION AND GUIDANCE
Insurers take account of when any risk becomes more of a probability than a possibility and then make commercial decisions. It should be noted that the World Health Organsiation has declared Coronavirus a global pandemic.
• But be reassured, trips already booked abroad under existing policies remain unaffected. Travel insurance for non-Covid19 related risks also remains available.
What should I do about travelling?
• The Foreign and Commonwealth Office has advised against all but essential travel for 30 days from 17 March 2020. This unprecedented step actually provides welcome clarity for customers and the industry. Generally, insurance cancellation or travel disruption will relate to FCO advice. This decision will therefore allow policyholders with cancellation or travel disruption cover in place to claim for cancelled trips that were already booked and cannot now go ahead.
• Looking ahead, if this advice is lifted after 30 days but still applies to the destination you were planning to visit, then you can claim under your travel insurance policy (again, provided you have cancellation or travel disruption cover in place).
• If you make alternative travel plans, then you may be able to transfer your travel insurance to cover your new destination.
• Travel insurance policies may cover some out-of-pocket losses, and also help you to leave the area and return back to the UK if you are advised to do so, and if you are unable to get assistance from any other source.
If I ignore any government advice against all but essential travel, will my travel insurance still cover me?
• If you travel against government advice then you are likely to invalidate your travel insurance. If you are unsure check with your travel insurer.