April 17, 2020
The global and domestic spread of COVID-19 has forced Canadians to reassess their upcoming travel plans – and insurers to assess their travel insurance claims. Weeks ago, airlines started canceling flights, businesses started to limit business travel, cities entered into states of emergency and the federal and provincial governments started closing borders to all non-essential travel. Many organizations offer travel insurance that will assist Canadian travelers mitigate their travel-related financial losses related to COVID-19. Here are three steps to help insurers assess travel insurance claims caused by COVID-19.
1. Identify the coverage source.
Canadians typically buy travel insurance through one of these three sources:
Direct. These include insurance brokers or brick-and-mortar travel agents that sell policies customized to the trip.
Riders. These include policies that add to basic insurance policies such as coverage afforded through an employer’s group insurance provider.
Add-ons. This includes travel protection from an airline booking site or travel credit card perks and benefits.
2. Understand the coverage purchased.
Understanding what a travel insurance policy covers requires a careful reading of the policy wording. Consult the policy to determine what coverage was purchased. Travel insurance policies can be comprehensive or targeted to a particular type of coverage.
Comprehensive policies. Known by many names (such as trip cancellation, vacation and comprehensive trip insurance), comprehensive travel insurance provides coverage for multiple events in one insurance package, including cancellation, interruption, evacuation, lost/stolen luggage and interruption coverage. Larger organizations will likely have comprehensive policies that may cover employee travel necessitated by COVID-19, including delays and alternative travel arrangements.
Targeted policies. Targeted travel insurance includes limited coverage for travel, medical (which provides emergency coverage), lost/stolen luggage, prescription drugs or evacuation (to take the traveler to the nearest hospital or repatriate them). These policies are specific and narrow in scope, and are typically add-ons to other financial and travel products.
3. Evaluate the exclusions.
Depending on the wording of the policy, unless explicitly provided, travel insurance does not cover voluntary cancellations or changes made by the traveler. Travel insurance also might not cover foreseeable events. Since the World Health Organization declared the novel COVID-19 as a global pandemic, coverage may be limited through policy wording dealing with pre-existing risk. Further, policies sometimes have exclusions that apply to pandemics (as opposed to localized disease outbreaks) and travel subsequent to government advisories.
We recommend reviewing policy wordings, which may contain exclusions for medical expenses, pre-existing conditions or personal injury relating to contagion. Review claims to see if the cancelation of a trip is because of risks associated with COVID-19, and assess the facts accordingly. As the wider outbreak was known by February 2020, consider whether such an event was foreseeable at the time the traveler purchased the policy.
If you are looking for advice or support with insurance issues arising from COVID-19, McInnes Cooper can assist you with understanding and responding to these risks. We provide solutions to corporations, insurers, underwriters, and agents within the insurance industry.
Please contact your McInnes Cooper lawyer or any member of our Insurance Defence Team @ McInnes Cooper to discuss this topic or any other legal issue.
McInnes Cooper has prepared this document for information only; it is not intended to be legal advice. You should consult McInnes Cooper about your unique circumstances before acting on this information. McInnes Cooper excludes all liability for anything contained in this document and any use you make of it.
© McInnes Cooper, 2020. All rights reserved. McInnes Cooper owns the copyright in this document. You may reproduce and distribute this document in its entirety as long as you do not alter the form or the content and you give McInnes Cooper credit for it. You must obtain McInnes Cooper’s consent for any other form of reproduction or distribution. Email us at [email protected] to request our consent.
Mar 30, 2023
The Alberta Court of Appeal recently sent a strong message to insureds: utmost good faith is not only key but is required in insurance claims.…
Dec 13, 2022
The insurer’s duty to defend a claim made against its insured is inextricably tied to coverage: there can be no duty to defend without a…
Apr 18, 2022
On March 28, 2022, the Supreme Court of Newfoundland and Labrador (General Division) decided that in a personal injury case, quantification of…
Mar 29, 2022
The Supreme Court of Canada’s recent consideration of estoppel and waiver in the context of a fatal injury case in Trial Lawyers Association…
Nov 23, 2021
On November 19, 2021, in Trial Lawyers Association of British Columbia v. Royal & Sun Alliance Insurance Company of Canada, the Supreme…
Oct 29, 2021
On October 21, 2021, the Supreme Court of Canada clarified the law concerning the circumstances in which government organizations - including…
Sep 23, 2021
On September 9, 2021, the Nova Scotia Court of Appeal released its decision in Aviva Insurance v. PK Construction Ltd. Dealing with Nova…
Jun 11, 2020
New types of claims will emerge while insurers may see an evolution or even decrease in the traditional types. Here are the types of claims and…
Feb 14, 2020
NOTE: On July 23, 2021, the Supreme Court of Canada agreed with the Newfoundland & Labrador Court of Appeal’s decision respecting the law,…
Jan 14, 2020
On December 23, 2019, the Newfoundland and Labrador Court of Appeal effectively eliminated the category of “knowledgeable fact witness” in…
Nov 22, 2019
On November 20, 2019, the Nova Scotia Court of Appeal confirmed pursuant to section 113BA(1) of Nova Scotia’s Insurance Act, in the context of…
Jan 21, 2019
On January 18, 2019, the Nova Scotia Court of Appeal rendered its unanimous (5-0) decision in Holland v. Sparks, overturning a motion decision…
Oct 25, 2018
NOTE: On November 20, 2019, the Nova Scotia Court of Appeal upheld the trial court’s decision and confirmed pursuant to section 113BA(1) of…
Oct 12, 2018
On October 11, 2018, the Nova Scotia Court of Appeal released its first decision considering the saving provision in Section 12 of Nova…
May 11, 2018
On May 8, 2018, for the first time, the Nova Scotia Supreme Court has ruled on the deductibility of Workers’ Compensation Board Extended…
Apr 26, 2018
The N.S. Court of Appeal has reached two decisions ending one employee’s quest for coverage of the costs of his medical marijuana – at least…
Jan 25, 2018
Insurers have generally been leery of coverage for medical cannabis in both the health benefit claims and in cost of care claims in the personal…
Jul 10, 2017
The legal landscape of cannabis (a.k.a. marihuana, weed, pot …) is changing, both reflecting - and contributing to - more relaxed attitudes…
Jun 5, 2017
On June 2, 2017, the Supreme Court of Canada decided that where a plaintiff advances a claim for negligently caused psychological or psychiatric…
May 3, 2017
On May 2, 2017, the N.S. Court of Appeal decided another case involving the deductibility of CPP disability benefits – but this time, in the…
Apr 6, 2017
Adding a third jurisdiction to Gard Update’s comparison between privilege in the corporate context under U.S. and English law, McInnes Cooper…
Mar 15, 2017
On March 9, 2017, the N.S. Court of Appeal stopped building inspection claims in their tracks when it decided that a defence based section…
Jan 30, 2017
On January 27, 2017, the Supreme Court of Canada decided in Sabean v. Portage La Prairie Mutual Insurance Co. that future CPP disability…
Nov 28, 2016
On November 25, 2016, the Supreme Court of Canada decided privilege wins again - twice. In two separate decisions - Lizotte v. Aviva Insurance…
Sep 19, 2016
On September 15, 2016, the Supreme Court of Canada decided certain damage to a building under construction was covered under the relevant…
Aug 17, 2016
The Newfoundland and Labrador Court of Appeal recently affirmed the test for confirming a cause of action and thus resetting a limitation period…
Jul 5, 2016
The Ontario Court of Appeal has re-ignited the discussion about when a municipality will be held liable for its shoddy bylaw enforcement…
Jun 20, 2016
As of July 1, 2016, packed cargo containers to which the International Convention for the Safety of Life at Sea (SOLAS), Chapter VI, Regulation…
Jun 20, 2016
Real estate vendors and purchasers have high expectations of their realtors – and they don’t often hesitate to pursue legal action against…
Apr 15, 2016
On April 14, 2016, Canada’s federal Justice Minister proposed legislation setting out the conditions that a person wishing to undergo…
Jan 27, 2016
On January 21, 2016, the Ontario Superior Court of Justice dramatically expanded the scope of legal privacy protection – and the liability…
Jul 21, 2015
On July 16, 2015, the New Brunswick Court of Appeal ordered an insurer to produce a significant amount of its financial and business information…
Jun 8, 2015
On June 4, 2015, the NS Court of Appeal decided the value of future CPP disability benefits is deductible under the SEF 44 family protection…
Feb 18, 2015
The new NS Limitations of Actions Act – the legislation that determines the limitation period (time limit) in which a lawsuit must be started…
Feb 9, 2015
NOTE: On April 14, 2016, the federal government proposed legislation setting out the conditions that a person wishing to undergo…
Nov 3, 2014
Note: On November 20, 2014 the NS Government passed the final form of Bill 64, Limitations of Actions Act into law. The final form of the Act…
Sep 9, 2014
Effective October 1, 2014, the New Brunswick Rules of Court will change – some Rules for the first time since they came into effect in 1982.…
May 2, 2014
April showers bring … flood and sewage back-up claims. Flooding and sewage back-up can result in significant damage for municipal ratepayers,…
Subscribe to McInnes Cooper to stay current with our leading insights on legal updates, trends, news, events, and services.