100th Anniversary of the Sinking of the Titanic a Reminder That No One Is Immune from Travel-Related Disasters

UNDERSTANDING TRAVEL INSURANCE COVERAGE FOR CRUISES AND OTHER VACATIONS

While safety records have improved considerably in the 100 hundred years since the sinking of the, supposedly “unsinkable” Titanic ocean liner on April 15^th 1912, disasters at sea, in the sky and on land continue to confront travelers in all parts of the world. Fortunately, travel insurance can provide valuable assistance and financial protection, according to the Insurance Information Institute(I.I.I.).

“Purchasing a travel insurance policy certainly won’t prevent a disaster from happening, but having the right coverage can make things much easier if the unexpected occurs,” said Jeanne M. Salvatore, senior vice president and consumer spokesperson for the I.I.I. “Travel insurance can protect your financial investment in a vacation or business trip and offer peace of mind by providing valuable assistance if there is a natural catastrophe, illness or other emergency while you are on a trip.”

Most travel insurance policies include three basic types of coverage:

1. Trip cancellation, interruption or delay: Provides coverage should you have to cancel a trip due to sickness, a death in the family, bad weather, delayed luggage or another disaster listed in the policy. In addition, if you or an immediate family member become seriously ill or are injured during the trip some travel insurance policies will reimburse you for the unused portion of the vacation. There may be an exclusion for pre-existing conditions, so check your policy carefully. Lastly, some travel insurance policies may provide coverage if the cruise or tour operator goes out of business. If this is a concern, read your insurance policy carefully to make sure it includes this scenario. If you are paying by credit card, you can also talk to the card issuer to see if the company also provides financial protection for this type of event.
   
   For an additional fee, some insurance companies also offer a “Cancel for Any Reason” provision, which covers insured travelers if they “cancel their trip due to the fear of something that may happen” such as civil unrest, a pandemic or the possibility of a natural disaster.
   
   

2. Medical Insurance and Medical Evacuation: Provides coverage if you become sick or injured while traveling. For example, if you had to be airlifted off a mountain due to a skiing or hiking accident, or if you had to stay for a prolonged period of time in a hospital outside the United States. It would also provide coverage if you got seriously sick or were injured and needed to be flown home. Some commercial airlines require very sick passengers to travel on a stretcher with a doctor. This means that you might have to purchase additional seats on a plane which can be very costly. A travel insurance policy will often reimburse you for that potential expense.
   
   

3. 24-hour Assistance: This is a service is provided by most travel insurance companies and can help travelers find doctors, arrange accommodations, contact families or provide other forms assistance in case of an emergency.

Other travel-related coverages may include: Accidental Death, should you or a family member die during the course of a trip; andLuggage Insurance or Personal Effects Coverage, which provides protection if your luggage and/or personal belongings are lost, stolen or damaged during the trip.

The cost of a travel insurance policy is based upon the age of the traveler, the specific coverages selected and the cost of the trip. On average, standard trip insurance policies will cost about 5 to 7 percent of the cost of the trip.

It is important to note that travel insurance is different from the cancellation waivers that many cruise and tour operators offer. Waivers are not insurance; they are relatively inexpensive (approximately $40 to $60) and provide coverage if you have to cancel the trip, but come with many restrictions and are not regulated by state insurance departments. So if your tour or cruise operator gets into financial difficulty, you may not be able to collect any money under the waiver.

There are many different travel insurance companies and types of policies to pick from. When deciding whether travel insurance is right for you, compare companies, policy coverage, benefits and prices. Also find out both what is included and what is excluded. And check your current health and homeowners insurance policies to see what coverage you have. For example, many people are surprised to find that their medical insurance may not cover them in international waters, and may provide no coverage at all for medical evacuation.

To get the travel insurance policy that is right for your situation, talk to your insurance professional or your travel agent. A detailed list of questions to ask when purchasing travel insurance is also available from the U.S. Travel Insurance Association.

RELATED LINKS

I.I.I. Consumer Article on Travel Insurance

U.S. Travel Insurance Association

THE I.I.I. IS A NONPROFIT, COMMUNICATIONS ORGANIZATION SUPPORTED BY THE INSURANCE INDUSTRY.

INSURANCE INFORMATION INSTITUTE, 110 WILLIAM STREET, NEW YORK, NY 10038; (212) 346-5500; WWW.III.ORG

For More Information Visit: Insurance Information Institute

Wedding & Special Event Insurance

Often referred to as “wedding” insurance, special event insurance can be used to cover a 50th anniversary party, a bar mitzvah, a graduation party or any special occasion you might be planning. Special event insurance is designed to provide financial protection if you have to cancel or postpone a gathering due to adverse weather and natural disasters such as hurricanes.

Most policies also provide coverage for cancellation due to the death, illness or serious injury of a key participants in the event, such as members of the immediate family. Also, if an officiant, such as a minister or rabbi, or a key vendor, like the caterer, florist or photographer, does not show up, you can recover some of the costs.

Prices range from around $125 up to approximately $400 depending on the amount of coverage you need.

Additional riders may include coverage for:

• Military service—in the event the bride or groom is in the military or active reserves, and is suddenly called to duty.
• Gowns and tuxedos—includes stores going out of business or damage to the clothing.
• Gifts—if gifts are not covered by your homeowners or renters insurance, provides protection against theft or damage of gifts.
• Honeymoon—in case you need to cancel your trip due to illness, bad weather or other circumstances.
• Professional counseling—when the cancellation or postponement of the event causes severe emotional stress (a doctor’s note will be needed).

Many companies also offer separate liability insurance, but be aware that many event sites already have their own liability insurance. If you are holding the event at home, however, you may want to purchase liability insurance above and beyond what is provided under your homeowners policy.

Before purchasing special event or wedding insurance, find out the following:

• Whether the insurance company is licensed to do business in the state where you live. This information is available from your State Insurance Department.
• How much the policy will cost and how much reimbursement you can expect if a loss occurs.
• What, specifically, is and is not covered by the policy.
• Whether you have coverage elsewhere through credit cards, warrantees or through home, auto or liability or other insurance policies you may already have.

For More Information Please Visit: Insurance Information Institute