Covered Reasons

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.

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