Losing your job when you have a trip planned can give a traveler pause: should you take your trip anyway or cancel it and save the money? If you recently lost your job and have an insured trip planned, you may be wondering ‘Does my travel insurance cover job loss?’
Yes, some travel insurance plans include job loss as a covered reason for cancelling your trip. If your travel insurance plan lists job loss as a covered reason to cancel, you can cancel your trip and make a claim to recover your non-refundable trip expenses and focus on finding a new job.
Note: some travel insurance plans also include being transferred under the covered reasons to cancel your trip (see the limits placed on this coverage below).
While the covered reasons listed in travel insurance coverage for pre-departure trip cancellation benefits is often lumped together with the coverage for post-departure trip interruption, the benefits that cover job loss are isolated to trip cancellation. As in, you must have lost your job prior to your trip departure and make a travel insurance claim to collect your non-refundable trip expenses as a result of cancelling your trip.
Specifically, job loss is not a covered reason to interrupt your trip and come home, so you won’t be able to make a claim on your trip interruption coverage.
As with all insurance plans, travel insurance places limits on coverage to ensure a little control over how much the travel insurance provider will have to pay out in the event of a loss. To that end, travel insurance cover for job loss will include restrictions like these:
Damian Tysdal is the founder of CoverTrip, and is a licensed agent for travel insurance (MA 1883287). He believes travel insurance should be easier to understand, and started the first travel insurance blog in 2006.