Covered Reasons

What Does Covered Reasons Mean?

Covered reasons, in the context of insurance, refer to reasons that travel insurance covers for trip cancellation or interruption. In case a policyholder must cancel a trip or end it short for a covered reason, the insurance company would reimburse them up to the coverage amount for qualifying travel expenses.

Insuranceopedia Explains Covered Reasons

Typically, a travel insurance plan packages covered reasons together for trip cancellation or trip interruption. They include but are not limited to the following:

• Illness or injury of the policyholder, a travel companion, family, or business partner,
• A natural disaster striking the destination,
• The travel company going bankrupt or out of business,
• Terrorist attack or a government mandated evacuation at the destination,
• Jury duty, subpoena, or military deployment,
• Loss of accommodations at the destination due to the illness, death, or hospitalization of the host,
• Being required to work, getting fired, or transferred,
• Residence or business damaged or burglarized,
• Legal separation or divorce,
• Passport or visa getting stolen prior to the trip.