Financial Default Coverage May Apply For Thomas Cook Travelers
Last updated on 09/04/2020
WARWICK, R.I., Sept. 23, 2019 -- Monday, British tour operator Thomas Cook came to a halt, stranding thousands of passengers worldwide. In response, InsureMyTrip is urging passengers affected by the collapse to review their travel insurance policy for possible coverage. U.S.-based policyholders may be eligible for trip cancellation and trip interruption benefits if they obtained a plan with financial default coverage and met requirements.
"When an airline stops business operations abruptly, this can be very stressful for passengers left in limbo," says InsureMyTrip Product Analyst Meghan Walch. "InsureMyTrip travel insurance agents are ready to provide support for those affected by the collapse. While it will take some time for Thomas Cook passengers to find alternate arrangements, those who purchased travel insurance may have coverage."
Financial Default Coverage
Most comprehensive travel insurance plans available on InsureMyTrip do include financial default coverage. This coverage aims to help in the event a trip is canceled or interrupted due to an airline or tour operator halting operations, due to financial reasons.
When an airline or tour operator is in financial default, the company ceases to provide any service and halts all operations with no hope of repairing the financial damage.
In order to qualify for this coverage, travelers must meet eligibility requirements, including:
- In most cases, must purchase within 10-21 days of making an initial trip payment
- Travel supplier must be eligible for coverage
- Required waiting period must be met (typically 10-14 days after the effective date) for the benefit to go into effect
Tip: Travelers should consider purchasing a travel insurance plan with financial default coverage included, since it is not available on travel protection plans offered directly by the airline or tour operator.
Filing A Claim
Policyholders may use the 24/7 emergency assistance hotline offered by their travel insurance company for possible support with rebooking flights and/or travel arrangements. In addition, affected policyholders may contact the claims department.
Travelers interested in learning more about financial default coverage can visit www.InsureMyTrip.com or call 1-800-551-4635 to speak with a licensed travel insurance agent.
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