Travel insurance can protect clients from an array of issues. Most of the time, vacations run smoothly, and travelers return home with memories of a lifetime. But having the safety net of travel insurance can ease anxious minds and provide vital support on the off-chance that something does go wrong.
Of course, one big concern on client’s minds these days is COVID-19 (coronavirus disease 2019). And now that the World Health Organization has officially declared the novel virus a pandemic, travelers are sure to be more cautious than ever. Just as it’s important that travel advisors understand the legalities related to dealing with the coronavirus, it’s key for agents to stay educated on effective travel insurance plans and policies.
We asked Jason Schreier, CEO of travel insurance provider April Travel Protection USA, for his opinion of the
situation.
(Note: This article offers insight into one insurance provider's approach. We do not recommend that agents sell travel insurance unless they are licensed to do so.)
Currently, what is the best type of coverage/plan that travel professionals can offer to clients who are expressing concern about the coronavirus?
They should opt for the Cancel For Any Reason (CFAR) Upgrade for plans that are still offering it. Be mindful, though, that this is expensive — typically 40 to 50% on top of the normal cost of the policy — and it only reimburses around 60 to 75% of their monies. Also, it’s important that clients purchase this option soon after putting any money down on their trip.
What are the specific advantages of CFAR, versus other policies you offer?
If we’re talking about the coronavirus, then CFAR is the only way a client will be able to cancel their trip out of fear of traveling due to the virus and still be covered.
What should an advisor recommend to a client who has already booked a trip but is now fearful of traveling?
They should speak with their travel suppliers (airlines, cruise/tour operators, hotels, etc.). Most suppliers are being incredibly flexible with their cancellation and change policies.
What advice should an agent give a client who has not yet booked a trip but is thinking of doing so?
I recommend booking with suppliers who already have flexible provisions in their cancellation/change terms. Additionally, I suggest looking into a policy with CFAR if the suppliers you want or need to use don’t have flexible terms to cancel or change plans. Be careful: Most policies with CFAR will require the potential policyholder to purchase the CFAR Option within a certain number of days from the point they first put money down on that trip.
What are the current coverage limitations when it comes to the coronavirus?
Policies don’t cover clients’ fear of traveling. Most policies have an exclusion for pandemics, so now that WHO has declared that the coronavirus can be characterized as a pandemic, coverage will become more restrictive to anyone who bought their policy after the known date of the virus (Jan. 21, 2020).
What are the main components to April’s Stress Less program, and why is it beneficial to travelers?
The main components are that we will help resolve any insurance-related issue a client experiences while traveling, such as an emergency medical situation or travel disruption.
If that situation is clearly covered by the policy, then we will pay on the spot to cover those expenses. That prevents the client from having to resolve the situation on their own, front their own monies and fill out claim forms to get reimbursed.
What support can clients expect from April while abroad?
We provide 24/7 emergency support via Skype, live chat, text, phone, or email.
The Details
April Travel Protection
us.april-international.com
