Travel safely: Consider insurance options

While I hope the demise of Osama bin Laden will mean a safer world, concern about retaliation and more erratic weather patterns are sources of worry for travelers. Unexpected circumstances can also pop up as in the case of a young couple that had just married in Manhattan and had booked a pre-paid charter to Martinique for their honeymoon and were in a bubbly mood en route to Kennedy Airport.

Unfortunately, the relative driving them was also bubbling with the effects of too much champagne. As a result, he let his car drift into a crash with a truck and created a mini-disaster. There were no serious injuries to the passengers but the unnerving delay and hassle with the police caused the couple to miss the special flight and to forfeit the entire cost of their pre-payment.

Tour operators have cited this case as a prime reason why you should never leave your homestead without buying travel insurance. I have to admit for many years I thought it was a waste, but as I mentioned above given the changing world and weather patterns, I now agree that travel insurance is a must. There are several types of insurance that are designed for different types of financial loss. The most popular type is the “Package Policy.” The policies vary from company to company but they are alike in that they are designed for single trips and usually have some or all of the following coverages:

Trip cancellation/interruption

Travel delay

Medical expenses

Baggage — loss or damage

Baggage delay

Emergency medical evacuation

Flight accident

Accidental death and

Rental car coverage

The provision mentioning trip cancellation/interruption is the closest indication that I can see to the inclusion of terrorism coverage in the plans. These coverages have specific covered reasons (named perils) that trigger their benefits. Most “package plans” will provide cancellation or interruption benefits in the event of a terrorist incident. However, there may be limits to coverage such as:

A requirement that you buy coverage within a specific time after your initial deposit.

The U.S. Department of State recognizes the event as an act of “terrorism.”