Does your cancellation insurance cover a cruise line cancellation?

[CDNPolar]

There is an interesting post by a brand new member in another forum, that tells the story that two weeks before her cruise the cruise line cancelled the cruise and offered refund to the cruise fare, but no compensation for purchased air (assume on own) or visas, etc., that were costs incurred that now could not be recovered.

 

My question is, does your cancelation insurance - if you buy it - cover you for cancellation fees associated with costs such as cancelling air fare purchased?  Other costs could be if you prepaid hotels before or after the cruise that are non-refundable?  

 

Full airfare may not be recoverable if the air transfers into a credit for future use, but there still could be cancelation fees associated.

 

I have looked into my current annual policy which is a Canadian Blue Cross policy, and I will call them to ask the question directly.

 

All I can find in the Blue Cross language is the following but I don't know if this is actually stating coverage for this situation or not?

 

0. When the loss incurred is directly or indirectly caused by a travel provider default, the reimbursement of your insured travel expenses is limited to the amount indicated on your insurance certificate, up to a maximum of $7,500 per insured person.

   In addition, the total amount that the insurer will be required to pay for all claims in the event of a travel provider default must not exceed:

   - $2,000,000 per event
   - $5,000,000 per calendar year

[klfrodo]

3 hours ago, CDNPolar said:

 

0. When the loss incurred is directly or indirectly caused by a travel provider default, the reimbursement of your insured travel expenses is limited to the amount indicated on your insurance certificate, up to a maximum of $7,500 per insured person.

    

Interesting question. I highlighted the above section regarding the default.

My policy from the US has a "definition" embedded in the policy for the word "default"

(can't copy & paste)

It basically defines it as total cessation of operations due to insolvency with or without the filing of a bankruptcy petition.....

 

My initial thoughts would be there is some kind of recovery process but not under the default provision. The cruise was canceled for other reasons than the company insolvency probably.

 

Looking forward to hearing others thoughts.

[jclinard]

Insurance won't pay for your flights if your cruise is canceled.

 

Been there, done that.  

 

That's why I book my flights via the cruise line.