Travel Insurance May Not Protect Travelers with Swine Flu Issues

Travel suppliers are scrambling to address the deadly outbreak of the swine flu. What measures do cruise lines, hotels, airlines and other suppliers put into place to be accommodating to travelers’ fears, but without instilling an industry-wide panic? Today, airlines announced somewhat flexible options to change flights, Carnival Cruise Line cancelled Mexican ports of call, and with new swine flu cases reported, it is natural that travelers are rethinking any travel plans. For those with pending itineraries, travelers may be thinking that travel insurance could provide them some protection. Or are they?

Squaremouth.com’s CEO Chris Harvey warns that this is not the case. As of Friday, April 24, 2009, swine flu is now considered a “foreseen” event and any policies purchased on that day and after will not cover any travel-related incidents to swine flu.

As health authorities scramble to contain a dangerous new strain of swine flu sweeping through parts of Mexico, North America and Europe, Harvey advises travelers it is too late to buy travel insurance if you are concerned about swine flu.

“The bottom line is this: Don’t rush today to buy travel insurance in hopes of being covered during the swine flu crisis,” warned Harvey.

Think about it like hurricane insurance. “If you don’t buy travel insurance before a storm receives its official name, you aren’t covered for losses relating to that storm,” Harvey added. Similarly, for most companies, Friday, April 24, 2009, was the date the swine flu outbreak became what the industry calls a “foreseen” or “known event” because of widespread media attention.

That means policies bought before April 24, when the outbreak was considered “unforeseen,” may well be honored. “After that date, forget it: the swine flu was already deemed a “known event,” so claims related directly or indirectly to outbreaks in Mexico or anywhere else will be denied,” Harvey explained.

Moreover, even if you think your policy covers “unforeseen circumstances,” there may be language in a General Exclusions section exempting claims “arising directly or indirectly from epidemics or pandemics.”

“Always check the fine print to see what protections apply to you,” Harvey said. In addition, be sure to check with any travel supplier to see what options they are providing, if any, to make changes to existing reservations.

The only way to ensure cover for swine flu is by adding on the optional “Cancel for any Reason” benefit available on some policies. This allows the traveler to simply cancel the trip without needing a covered reason. “There are drawbacks,” Harvey warns, “you can only cancel up to 48 hours before you leave and you may not get 100% of your money back. Make sure you check the fine print before you buy.”

For your convenience, Squaremouth has posted travel insurance information relating to the swine flu outbreak on our home page at Squaremouth.com. “We’re compiling official swine flu position statements from insurers and posting the updates at www.squaremouth.com/travel-advice/swine-flu-outbreak,” he said.

“We’re available toll-free at 800-240-0369 to discuss your concerns about the outbreak and how it affects travel insurance. It’s all part of our commitment as an advocate on behalf of our customers.”

For now, the Centers for Disease Control and Prevention (CDC) has not classified the swine flu outbreak as a pandemic. Travelers can keep up with the latest briefings on the CDC website: www.cdc.gov/swineflu. Or check the CDC Twitter link: http://twitter.com/CDCemergency