First things first, to know how something works, you must know what it is. So, what is trip cancellation insurance?
What is trip cancellation insurance?
Trip Cancellation Insurance is an insurance policy that protects your investment when it comes to a trip being cancelled, including yacht charters. It differs from Travel Insurance, which provides international medical insurance coverage for when you are traveling abroad, outside of your home country. According to ValuePenguin (Lending Tree), 48% of Americans cancelled their summer travel plans due to COVID-19. While we seem to be trending in a different direction a year later, one cannot ignore the reality that the travel industry may never truly be the same with tighter restrictions, and new rules and regulations making it more difficult to travel.
How does trip cancellation work?
Booking a nice vacation is often not a spur of the moment or spontaneous experience. Typically, trips are booked months in advance, with several scenarios that can happen in that given time to alter your plans, even forcing you to cancel. For example, if you booked yacht charter for $50,000 for your family 6 months in advance of the trip, chances are there are a few nonrefundable expenses you also had to book including airfare, hotel accommodations, activities, etc. One week before you are slated to leave, your wife becomes sick and is unable to travel, therefore forcing you to cancel your plans. Trip cancellation insurance would then reimburse you for the trip, allowing you to put that money back into your bank account or use it for another trip!
What is covered by trip cancellation insurance?
A good trip cancellation insurance plan should protect you from many issues that may come up causing you to cancel your plans. Examples of items typically covered by a good trip cancellation insurance policy include:
· Sickness, injury or death of insured, a family member, a travel companion, a business partner or a child caregiver
· Primary residence or destination being rendered uninhabitable
· Documented theft of passports/visas
· Involved in a merger, job loss or job relocation
· Documented traffic accident
· Unannounced strike
· Inclement weather that causes cessation of services provided by your common carrier
· Mechanical breakdown of the common carrier
· Evacuations due to natural disasters
· Emergency military duty for national disaster
· A terrorist incident
· Revoked military leave
· Bankruptcy or Default of Travel Provider*
· NOAA hurricane warning at destination
· Court order to appear as a witness
· Jury duty
According to Bankrate, Americans spend an average of $1,979 per person on summer vacations. That amount does not really compare to what it costs to charter a yacht, as that can be tens, sometimes, hundreds of thousands of dollars. No one wants to lose that investment due to an unexpected event, which is why we say, plan for what is not on the itinerary.
Why Yacht Charters?
Given what is currently going on in the world, we are seeing that many people are looking to use yacht charters instead of cruises due to the social distancing implications and overall wellbeing concerns, and being able to limit who they come into contact with, as well as the destinations they are going. With certain locations opening and getting ready for tourists, such as the Bahamas, its clear to see why this is going to be an attractive alternative in the coming months.
Life is unpredictable and plans often change. One of the basic issues that insurance protects us against is the fact that life is unpredictable. So, while you may not be able to prevent a situation from happening, you can prevent an issue from becoming a worst-case scenario. For more information on the different types of coverage that trip cancellation insurance offers, contact us at +1 954 828 1819 or +44 (0) 1624 678668 or visit us online at mhginsurance.com.