Financial Default

• Cancellation
  • Financial Default

  • Covered after 14 day wait if purchased within 14 days of trip deposit

• What is Financial Default?
  Financial Default can reimburse a traveler’s trip costs if they need to cancel because of a complete suspension of operations by their travel supplier due to financial circumstances, whether or not bankruptcy is filed.

• What am I covered for?
  TRIP CANCELLATION

  We will reimburse You, up to the amount shown on the Schedule of Benefits, for Trip Cancellation Covered Expenses, if You are prevented from taking Your Covered Trip due to any of the Unforeseen Events listed below. The Event must occur before You depart on Your Covered Trip and while Your coverage is in effect under this Policy.

  Trip Cancellation Covered Expenses

  a. Forfeited, Prepaid, non-refundable, and non-refunded published Payments or Deposits that You paid for Your unused Trip. Should You elect to reschedule Your Trip instead of cancelling, in lieu of covering these expenses We will pay for Change Fees charged by Your Travel Supplier;

  b. Fees incurred by You to reinstate any of the following used to pay for any part of Your Trip: traveler awards, frequent flyer miles or Hotel/Motel rewards;

  c. Airfare cancellation charges for flights in connection with Your Trip.

  Special Conditions: You must advise the Travel Supplier and Us as soon as reasonably possible in the event of a claim. We will not pay benefits for any additional charges incurred that would not have been charged had You notified the Travel Supplier and Us as soon as reasonably possible.

  The following are the Unforeseen Events for Trip Cancellation:

  6. Bankruptcy and/or Default of Your Travel Supplier that occurs more than 14 days following the Effective Date. Coverage is not provided for the Bankruptcy or Default of the agency from whom You purchased Your Land/Sea Arrangements. Your Scheduled Departure Date must be no more than 12 months beyond the Effective Date. Benefits will be paid due to Bankruptcy or Default of an airline only if no alternate transportation is available. If alternate transportation is available, benefits will be limited to the change fee charged to allow You to transfer to another airline in order to get to Your intended Destination. This coverage only applies if the Policy was purchased within 14 calendar days of the Initial Trip Payment.

  TRIP INTERRUPTION

  We will pay a benefit, up to the maximum shown on the Schedule of Benefits, if You are prevented from continuing or resuming Your Covered Trip due to any of the Unforeseen Events listed below occurring on or after the Effective Date of the Policy.

  Trip Interruption Covered Expenses

  a. Forfeited, prepaid, non-refundable, and non-refunded published Payments that You paid for Your unused Land/Sea/Air Arrangements;

  b. Airfare cancellation charges for flights in connection with Your Trip;

  c. Additional transportation expenses incurred to reach the Return Destination. Benefits will not exceed the cost of airfare (the same class airfare on which You were originally booked) less any refunds paid or payable;

  d. Additional transportation expenses incurred by You, for travel by the most direct route to:
  i Your scheduled Destination if Your departure is delayed and You leave after the Scheduled Departure Date and time;
  ii Rejoin Your Trip in progress from the point where You interrupted Your Trip;
  iii The Return Destination of Your Trip.

  Benefits payable for additional transportation expenses will not exceed the cost of airfare (the same class airfare on which You were originally booked) less any refunds paid or payable.

  The following are the Unforeseen Events for Trip Interruption:

  6. Bankruptcy and/or Default of Your Travel Supplier that occurs more than 14 days following the Effective Date. Coverage is not provided for the Bankruptcy or Default of the agency from whom You purchased Your Land/Sea Arrangements. Your Scheduled Departure Date must be no more than 12 months beyond the Effective Date. Benefits will be paid due to Bankruptcy or Default of an airline only if no alternate transportation is available. If alternate transportation is available, benefits will be limited to the change fee charged to allow You to transfer to another airline in order to get to Your intended Destination. This coverage only applies if the Policy was purchased within 14 calendar days of the Initial Trip Payment.