How Does Supplier Financial Default Coverage Work?

You will find a brief summary of the Financial Default benefits below. Please refer to the applicable policy's Certificate of Coverage or Evidence of Benefits for the complete policy wording. Here are the links to our detailed description pages: Travel Guard Essential and Travel Insured Lite plans

"Supplier Financial Default" is a complete suspension of operations due to financial circumstances whether or not a bankruptcy petition is filed. In other words, just the act of filing for bankruptcy or becoming bankrupt doesn't necessarily qualify as a valid Financial Default claim. The travel supplier has to completely cease operations.

The Travel Guard Essential Expanded and Travel Insured Lite Expanded plans cover you if you buy your trip directly from the travel supplier (ie - no third party) and / or if you use a travel agent.

Important: If the travel supplier is already in bankruptcy, you can't be covered for Supplier Financial Default.

Follow These Rules To Cover Supplier Financial Default
If you want Supplier Financial Default coverage, you have to fulfill these 3 requirements:

1. You have to insure at least your trip's full prepaid, non-refundable cost (you can't round it down) and

• If you don't know your final trip cost, estimate it high to be safe. You can always lower it prior to your departure date. If it drops you to a lower trip cost range, you can get a partial refund.

2. You must get your Travel Guard Essential Expanded and Travel Insured Lite Expanded travel insurance in the first 14 days after your first trip payment date and

3. You have to cover your trip's full length.

Any payment on your trip is considered the first payment. This includes the tax you pay when you redeem frequent flyer tickets, refundable deposits or even a trip planning consultation fee if that fee is later credited toward your trip costs.

Travel Guard

Travel Guard's Certificate says:

"Financial Default" means the total cessation of operations due to insolvency, with or without the filing of a bankruptcy petition by a tour operator, cruise line, or airline provided the Financial Default occurs more than 14 days following an Insured's effective date for the Trip Cancellation Benefits. There is no coverage for the Financial Default of any person, organization, agency, or firm from whom you purchased travel arrangements supplied by others.

TRIP CANCELLATION & INTERRUPTION
The Insurer will pay this Primary benefit up to the Maximum Limit shown on the Schedule of Benefits if a Trip is delayed, canceled, or interrupted due to any of the following Unforeseen reasons: ... (g) Financial Default of an airline, cruise line, or tour operator resulting in the complete cessation of services. Financial Default occurring on or before the Insured's coverage effective date or less than fourteen days after the Insured's coverage effective date will not be covered. This coverage applies only if insurance was purchased within fifteen calendar days of initial Trip payment. (Day one is the date the initial Trip payment is received.);

_______________

Travel Insured says:

Bankruptcy / Default Protection

"Trip Cancellation / Trip Interruption:

Bankruptcy or Default of Your Travel Supplier that solicited this protection plan from whom You purchased Your Land/Sea Arrangements. Benefits will be paid due to Bankruptcy or Default of an airline only if no alternate transportation is available. If alternate transportation is available, benefits will be limited to the change fee charged to allow You to transfer to another airline in order to get to Your intended destination. You must purchase Your plan within 14 days of Your initial Trip deposit.

Definitions:

"Bankruptcy" means the filing of a petition for voluntary or involuntary bankruptcy in a court of competent jurisdiction under Chapter 7 or Chapter 11 of the United States Bankruptcy Code 11 U.S.C. Subsection 101 et seq.

"Default" means a material failure or inability to provide contracted services due to financial insolvency.

Home Travel Guard Essential & Expanded Details Travel Insured Lite & Lite Expanded Details		Since Jan. 2005
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