11 Trip Cancellation Insurance Situations That Are Covered (and What to Document)

6. Travel supplier bankruptcy or supplier default

When an airline, cruise line, or tour operator goes bankrupt or otherwise defaults and stops providing contracted services, trip cancellation coverage often applies. This is especially true if the supplier cancels the trip and fails to offer full refunds. Insurers tend to cover prepaid, nonrefundable costs that aren’t reimbursed by the supplier or credit card chargebacks. Key documents include the supplier’s cancellation notice, bankruptcy filings or official press releases, and evidence of your prepayment such as invoices and credit card statements. If you attempted to obtain a refund and were denied, retain that correspondence. Filing quickly helps because some protections depend on timing. If a supplier issues a partial refund, report that amount to your insurer since it may reduce the insurance payout.