Definition
Trip Cancellation Cover
Trip cancellation cover reimburses non-refundable travel costs if a trip is cancelled or cut short for covered reasons.
A component of travel insurance, this benefit pays back prepaid, non-refundable expenses such as flights and hotel bookings if the traveller must cancel or curtail the trip due to covered events like illness, injury, a death in the family or certain emergencies.
Covered reasons and exclusions are defined precisely; cancelling for a reason not listed, or due to a known event, is not payable. For expensive international trips with large prepaid costs, cancellation cover protects against losing the entire outlay if plans collapse for a valid reason.
Related terms
- Travel InsuranceTravel insurance covers financial risks during a trip, including medical emergencies, trip cancellation, lost baggage and flight delays.
- ExclusionAn exclusion is a specified condition, event or circumstance that an insurance policy does not cover.
- Emergency Medical EvacuationEmergency medical evacuation cover pays to transport a traveller to the nearest suitable medical facility or back home when local treatment is inadequate.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.