What does trip cancellation & interruption insurance cover (and not cover)?
Trip cancellation and interruption insurance covers prepaid, non-refundable trip costs lost to a covered reason — such as a covered illness, injury or specific named events — before or during a trip. It does not cover cancelling simply because you changed your mind, known events, or reasons outside the policy's list, unless you add a Cancel for Any Reason option.
Key takeaways
- Covered: prepaid, non-refundable costs lost to a reason named in the policy.
- Covered reasons often include a covered illness, injury or specific events.
- Not covered: change of mind or reasons outside the policy list.
- Known or foreseeable events at purchase are typically excluded.
- Cancel for Any Reason adds flexibility, usually as partial reimbursement.
Trip cancellation and interruption insurance is precise about what it will and will not reimburse, and that precision is where travellers most often get caught out. The plan protects your prepaid money — but only for the reasons it names, and within defined limits.
What it covers
The coverage reimburses prepaid, non-refundable trip costs — flights, tours, accommodation, deposits — when a covered reason stops the trip or disrupts it. In broad terms:
- Cancellation reimburses those costs when a covered reason prevents you from departing.
- Interruption reimburses the unused portion plus certain additional costs when a covered reason forces you home early or delays your return.
Covered reasons are listed in the policy and commonly include a covered illness or injury affecting you or a travelling companion, and specific named events. We also offer a Trip Interruption Only option for travellers who want just the after-departure protection.
What it does not cover
The exclusions are as important as the inclusions. Standard coverage generally does not pay for:
- Change of mind. Cancelling simply because you no longer want to go is not a covered reason.
- Reasons outside the policy list. If the reason is not named, it is not covered under standard terms.
- Known or foreseeable events at the time you bought the coverage.
- Costs that are already refundable, since there is no loss to reimburse.
- Circumstances named in the policy’s exclusions.
Reading the covered-reasons list and the exclusions side by side is the only way to know exactly where you stand before you need to claim.
The Cancel for Any Reason option
For travellers who want flexibility beyond the listed reasons, a Cancel for Any Reason option exists. It typically reimburses a portion of your prepaid costs and comes with conditions — such as buying it within a window of your first booking and cancelling by a set deadline before departure. It is not a full refund of everything, but it widens the circumstances under which you can recover costs. If the standard list feels too narrow for your situation, it is worth pricing.
The timing rule
A recurring theme in the exclusions is timing. Events that are already known, expected or foreseeable when you purchase are generally excluded, because insurance covers the uncertain, not the already-happening. Buying your cancellation coverage soon after you book — before any triggering event is on the horizon — is the simplest way to keep the protection intact.
Match expectations to the policy
Trip cancellation and interruption insurance covers prepaid, non-refundable costs lost to a named reason, and excludes change of mind, unlisted reasons and known events. The practical move is to read the covered reasons, note the exclusions, and consider Cancel for Any Reason if you want more latitude. Comparing your options with a quote lets you line the coverage up against what you have actually prepaid and the reasons that matter to your trip.
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Purchase now →Frequently asked questions
What reasons are typically covered?
Policies list the covered reasons, which commonly include a covered illness or injury to you or a travelling companion, and certain specified events. The exact list varies by plan, so read it carefully. A reason not on the list is not covered under standard cancellation and interruption.
Can I cancel just because I no longer want to go?
Not under standard coverage, which pays only for listed reasons. A Cancel for Any Reason option provides broader flexibility, typically reimbursing part of your costs under set conditions such as cancelling by a deadline. Check whether your plan includes it.
Are events I already knew about covered?
Generally no. Known, expected or foreseeable circumstances at the time you buy the coverage are usually excluded. Buying coverage soon after booking, before any triggering event is known, helps keep the protection effective.
TripCovered is a licensed insurance referral service operating in Ontario. Insurance is administered by North American Air Travel Insurance Agents Ltd., doing business as TuGo®, a licensed insurance broker in all provinces and territories. The issuer of the contract is Industrial Alliance Insurance and Financial Services Inc. and Industrial Alliance Pacific General Insurance Corporation. Coverage is subject to the terms, conditions, limitations and exclusions of the policy. This website provides general information only and is not a contract of insurance. Always read your policy wording before you travel.