Definition - What does Epidemic mean?
An epidemic refers to the rapid spread of a disease within a certain geographical area within a relatively short period. It is not to be confused with a pandemic, which is, to put it simply, a worldwide epidemic. In the context of insurance, some travel insurance policies may reimburse policyholders for trip cancellation or interruption due to an epidemic. Moreover, evacuation coverage can pay for the costs to bring the policyholder to a health care facility or back home.
Insuranceopedia explains Epidemic
For example, an Ebola epidemic erupts in a travel destination either before or during a planned trip. In this case, depending on the coverage, the policyholder would be entitled to prepaid travel costs and related expenses for trip cancellation or other similar expenses for trip cancellation. In case the policyholder contracts the disease in a remote location, evacuation coverage would pay for the costs of transporting them to a nearby medical facility, a hospital of choice, or back home to a hospital.