Traveling Insurance in an increasingly uncertain world.

For years, I’ve had the privilege of exploring captivating destinations around the world. Some of these trips took me to remote corners, while others were closer to home, yet the risk of flight cancellations, lost luggage, or disruptions due to COVID-19 was always a concern. After leading tours for over 20 years, I’ve encountered many challenging situations that underscore the vital role of travel insurance. In the following, I’ll share scenarios that highlight why spending a bit more on travel insurance can be highly beneficial, even for smaller tour operations. I’ll detail several cases where travel insurance could have significantly improved the outcome for the travelers.

Having health insurance in the US doesn’t automatically extend to coverage while traveling abroad. Some credit cards offer travel insurance, but it’s crucial to review the specifics of their coverage before you leave home. Often, this coverage is quite limited and may not include emergency hospitalization or medical evacuation. Additionally, most insurance policies do not cover cancellations due to a pandemic.

During the height of the COVID-19 pandemic, many countries required travelers to have health insurance that covered COVID-19 as a way to encourage tourism while easing the strain on their healthcare systems. Hospitals were struggling with shortages of beds, supplies, and staff. Nowadays, many travel insurance providers include COVID-19 coverage in their standard policies.

On average, basic travel insurance that covers COVID-19 cancellations, emergency transportation, hospitalization, lost luggage, and flight cancellations costs between 5-7% of the total trip cost. For example, a $500-$700 insurance policy would protect a $10,000 African safari. Given the current travel landscape, I highly recommend considering this type of coverage, especially for trips to remote locations. Be aware that insurance costs can vary depending on the country you’re visiting.

To illustrate the value of travel insurance, consider a recent case involving a disastrous trip to India. The travelers fell ill after a meal and required hospitalization, and their tour leader also spent three days in the hospital. This situation caused major disruptions and resulted in significant medical expenses for everybody in the group.

In another example, a friend traveled to Cuba and broke her femur. Due to the limited medical facilities there, she was given sedatives and had to wait three days before being airlifted to the U.S. in an air ambulance. Although non-profit organizations can assist with such transport for U.S. citizens, the process is complicated and time-consuming.

Even for domestic trips, purchasing basic travel insurance that covers flight and lodging is advisable. With the current unpredictability of airline schedules, flights are frequently canceled, leaving travelers stranded with few options. Many insurance policies cover flight changes and cancellations, along with luggage loss.

As for how tour operators are affected when a participant lacks insurance, it’s straightforward: tour prices are usually based on the number of participants. If someone has to cancel at the last minute due to illness or an accident, it can be challenging for companies to recover expenses for transportation and lodging. Transportation costs remain the same regardless of whether the full group is present, and lodging costs often aren’t refunded if canceled less than 30 days before arrival. This is why many tour operators now require participants to purchase travel insurance. Always read the fine print when buying insurance and ask specific questions to ensure it meets your needs.

Here are some companies I have used in the past.

https://www.allianztravelinsurance.com/

https://www.travelinsured.com/

Disclaimer: I am not a licensed insurance provider, so all opinions expressed are my own based on my experience over the years.  Travelers are responsible for reading the Description of Coverage for any travel insurance you wish to purchase and to read the definition of coverages/exclusions.  My examples here do not indicate guarantees of coverage for your specific situation each insurance company have specific coverage for your trip, so make sure to get all the details. 

leo.