Definition - 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.