Coverage for the cancellation of a trip due to work related reasons varies greatly from policy to policy. While most comprehensive plans will offer coverage if you are unexpectedly terminated or transferred a certain distance from your home, there are significantly less options that will allow cancellation on account of job obligations. If you think this may happen to you, you should consider plans that offer Cancel for Work Reasons (CFWR) coverage.
There are also a couple rules that determine when Cancel for Work Reasons coverage can be used:
- You must already have your time off approved by the company. Insurance will not protect you in a case where you’re worried about your boss denying a vacation request. What it will do is cover you if you get your vacation and have it unexpectedly taken away after the fact.
- Certain policies that offer this coverage will cover you if your job obligations prohibit you from taking the trip. This could be in a situation where your replacement has become ill or injured and can no longer work for you, or a crucial project has come up that demands your personal attentions. In these cases, proof of the requirement would need to be shown, in the form of a notarized statement from an officer of your company.
There are some situations, unfortunately, where this coverage will not apply. Only one or two policies will provide coverage for self-employed individuals, so if you work for yourself it is important to check the terms and conditions to see if a plan covers you. Also, it will not cover you against the possibility of getting a job, so for this you would need to look at plans offering Cancel for Any Reason coverage.