Pre-travel cancellation cover is essential with all travel policies

20th November 2014

Your clients will agree that there’s only thing worse than having to cancel a holiday – and that’s being unable to claim their money back.

Cancelling is the last thing anyone want to think about when they’ve just booked a dream holiday. But stuff happens, and taking out travel insurance is all about being prepared for the unexpected. So make sure that every policy includes cancellation cover that’s valid for the all-important period before the travel date.

We are finding that a surprising number of people opt for cancellation cover that only kicks in the day they travel. But this means they can’t claim if they have to cancel before that date – precisely when it is most likely to happen.

In fact cancellation cover needs to be valid from the day the holiday is booked. Then if the worst should happen and they’re unable to travel, they can claim for a refund.

It’s also important to ensure that every policy covers the full cost of cancelling the holiday, including transfers, pre-booked excursions and other extras as well as flights and accommodation.

The other big mistake people make is choosing a cheap, inferior policy with no cancellation cover at all. This is definitely a false economy. Our figures show that three policy holders in every hundred make a cancellation claim, so it’s worth letting clients know that having to cancel is not at all uncommon.

Finally, another point you can’t reiterate too often to your clients is the need to declare all pre-existing medical conditions when they sign up for their travel policy. Remind them that if they fall ill on holiday and need to make any kind of claim, their GP will be asked to supply medical records. If these show an undeclared condition, the entire policy could be invalid – a very costly oversight indeed.