How does trip cancellation & interruption insurance work?

Trip cancellation and interruption insurance protects money rather than health. It exists for the situations where something stops a trip you have already paid for — before you leave, or after you have gone — and it works by giving you back the costs you cannot recover on your own.

The money it protects

Most trips involve prepaid, non-refundable costs: flights, tours, a resort stay, deposits. If a covered reason prevents the trip or cuts it short, that money would otherwise be lost. Trip cancellation and interruption insurance reimburses those eligible costs up to your coverage limit, so a disrupted trip does not also become a financial loss. The coverage is about recovering what you have put in, not the medical risk of travelling — that is a separate emergency medical plan.

Cancellation versus interruption

The two halves of the coverage apply at different stages:

• Trip cancellation applies before you depart. If a covered reason stops you from going, you recover your prepaid, non-refundable costs.
• Trip interruption applies after you have left. If a covered reason forces you home early or delays your return, you recover the unused portion of the trip plus certain additional costs, such as a change fee or extra transport to get home.

A single plan can include both, and we also offer a Trip Interruption Only option and a Cancel for Any Reason option for travellers who want a different balance of coverage.

Covered reasons matter

This is the part travellers most often misunderstand. Standard cancellation and interruption coverage pays only for reasons the policy lists — commonly a covered illness or injury, or specific named events. It does not pay simply because you changed your mind. If you want the flexibility to cancel for reasons outside that list, a Cancel for Any Reason option exists, typically providing partial reimbursement under set conditions. Always read which reasons your plan covers so your expectations match the policy.

How a claim works

When a covered reason arises, you notify the insurer and submit a claim with documentation: your booking confirmations and receipts showing the prepaid, non-refundable amounts, and proof of the reason — for example, medical documentation for a covered illness. Eligible costs are then reimbursed up to your limit. Good records are essential; the clearer your documentation of both the loss and the reason, the smoother the claim.

Sizing the coverage

Because the plan reimburses prepaid costs, the right coverage amount is usually your total prepaid, non-refundable spend. Add up your flights, tours, accommodation and deposits, and insure to that figure so a claim can actually make you whole. Buying coverage soon after you book is also wise, since some benefits relate to events that occur between booking and departure.

Protect what you have already paid

Trip cancellation and interruption insurance works by standing behind the money you commit to a trip: cancellation before you leave, interruption after. Match the coverage to your prepaid costs, understand the covered reasons, and keep your records. Comparing your options with a quote helps you line the coverage up with the trip you have actually booked.