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What is Financial Default Coverage?
Financial default coverage protects you in the event that a travel supplier — such as an airline, cruise line, hotel, or tour operator — goes bankrupt or ceases operations before or during your trip. An airline, cruise, or tour operator that goes out of business with or without filing for bankruptcy can leave travelers in a very difficult position without appropriate insurance.
Why Is Financial Default Coverage Important?
Many travelers assume that if their airline or cruise line goes bankrupt, they will be protected by their credit card company. Travel insurance with financial default coverage provides a clear, reliable safety net. Make sure your policy specifically names financial default as a covered reason and check the list of covered suppliers.
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