Am I Covered If My Airline or Travel Provider Goes Bankrupt?

For information relating to policies purchased prior to October 23 2024, please check the Policy Wording provided with your purchase. You can contact us if you need this sent to you again. For plans purchased after October 23 2024, please see below.    

It’s unfortunate, but it happens: Your airline, tour operator, or hotel goes bankrupt or stops operating for financial reasons. While this may cut your trip short, World Nomads’ travel insurance* plans offer some protection for this case scenario. 

What’s covered? 

To be covered under a World Nomads plan, the bankruptcy must have happened more than14 days after the effective date of your policy (that’s 12am local time at your destination the day after the premium is received). 
 
For airline bankruptcies or default, coverage is limited to the change fee if alternative flights to your destination are available through other carriers (in many cases, partner airlines can accommodate passengers of the carrier who went bankrupt).  
 
As a first step, we recommend that you get in touch with your travel provider directly to see if you can get a refund or make alternative arrangements if you happen to be stranded or delayed due to the cessation of operations. Try to gather as much information as possible and keep a record of your correspondence to submit with your claim.  
 
Once you’ve verified what your travel provider can or can’t provide, you can make a claim under two sections of your policy: Trip Cancellation and Trip Interruption. Under the first case, you may be reimbursed for your non-refundable, pre-paid trip expenses. You may also have Trip Interruption benefits available to you if the bankruptcy occurs while you are on your trip. As each case is difference, we suggest you call our customer service team to discuss what is covered before you make any decisions on what to do. 

What’s not covered? 

Bankruptcy means the total cessation of operations due to financial insolvency, with or without a filing. The plan doesn’t cover: 

  • When a travel provider is still running or offering services even if a bankruptcy has been declared. 
  • When you’ve been offered alternative arrangements by the travel provider (Change fees are covered.). 
  • Concerns about a potential bankruptcy. 

This is only a summary of coverage and does not include the full terms and conditions of the policy. You should read your policy wording in full so you understand what is and isn’t covered. That way there won’t be any surprises if you need to use it. If you have any questions, please contact us.   

*All information we provided here is a brief summary. It does not include all terms, conditions, limitations, exclusions, and termination provisions of the plans described.  Please carefully read your state specific plan documents for a full description of coverage. Travel insurance is included as part of your travel protection plan which contains both insurance benefits and non-insurance assistance services. Material included on this page does not represent, nor is it specific to, United States Fire Insurance Company or travel insurance benefits provided on United States Fire Insurance Company’s travel protection plans.  


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