Coronavirus Panic Outlines Limits of Most Travel Insurance
Skift Take
Airline and online travel agencies have been under fire from legislators in recent years for their travel insurance marketing tactics. In these trying times, these companies now more than ever must provide greater transparency into what their policies do — and don't — provide before consumers click the button to purchase.
Millions of travelers around the world are facing the difficult decision of whether to cancel upcoming trips because of the coronavirus outbreak.
Those who booked a trip with travel insurance could be feeling smart about their decision. The reality, however, is that the viral epidemic has been a known quantity for many weeks now, and travel insurers have been categorizing it as a "foreseen" event and a "known risk" and therefore not covered unless the ticket was booked by a specific date.
Standard policies typically reimburse only travelers who fall ill during the course of a trip for emergency evacuation or an emergency hospital visit. Beyond that, no policies cover events like a viral outbreak. The reality is ongoing mass disruptions are uninsurable — and bad business for insurance providers.
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Indeed, travel insurance has its limits. In the case of the coronavirus, in
