Terrorism and travel insurance: what you need to know

What do insurance companies consider a terrorist act?

Every insurance company has its own definition of what constitutes an act of terrorism, and it’s not necessarily the same as that of governments. Read your policy to find out. A terrorist act may include, for example, acts of force or violence carried out with the aim of intimidating a government or group for religious, political or ideological reasons, but not acts of war or rebellions.

Can I cancel my trip if a terrorist act occurs in the country I am planning to visit?

Trip cancellation may be covered by your travel insurance, under three main conditions:

1. You have taken out insurance that includes trip cancellation coverage.
2. The Canadian government did not have an advisory in effect recommending that you not travel your destination region.
3. Your trip and travel insurance were purchased before the government issued a travel advisory.

Note that some insurers do not cover the entire loss in the event of a trip cancellation directly or indirectly linked to a terrorist act. An insurer might, for example, reimburse only half the cost of the cancelled trip. This is why it is important to ask questions to ensure you clearly understand the product you are buying.

There is an attack during my trip and I am injured. Will the insurer cover my medical expenses?

Certainly. The insurer will assist you and cover your costs if your policy includes emergency medical care coverage. Its efforts, however, depend on the situation in the area where you are travelling. For example, hospitals and clinics may be in a state of disorder or even unreachable. In such a case, the insurer will try to find other adequate care facilities.

Will my insurer cover my costs if I must terminate my trip in the event of an attack?

Your insurer may cover your costs for your return home if your planned transportation means is no longer available. However, you must have trip interruption coverage, which is not automatically included in most insurance policies. Check your coverage and if necessary, choose a comprehensive travel insurance policy that offers a combination of several coverages.

There has been no attack, but the government has just issued a travel advisory for the region I am currently visiting. What are my options?

Your options depend on the extent of your coverage for trip cancellation or interruption. With an “all-risks” type of policy, you may be covered if there is an unexpected, unforeseen event beyond your control that endangers your life. So this option could turn out to be very useful.

Am I required to cancel my trip if an advisory is issued concerning my destination?

Whether or not to travel is a personal decision. It is, however, recommended that you follow the Government of Canada’s official advisories. If you’re thinking about cancelling your trip, speak with your travel counsellor or even your airline. Most important, contact your insurer so that you clearly understand all the implications. Cancelling an already organized trip may result in inconveniences and disappointments, but most important, financial losses. A comprehensive travel insurance policy could at least help you compensate for the latter.

I would like to know if there is a risk involved in visiting a country. Where can I get that information?

Visit Travel and tourism of the Government of Canada to read all of the federal government’s recommendations. This is an invaluable source of information for all travellers. If you have travel insurance, the assistance service included in your policy is another source of useful information.

Registration of Canadians abroad

The registration of Canadians abroad service is offered to travellers free of charge by the Government of Canada. Among others, you will be alerted in the event of an emergency abroad or a personal emergency at home, and you will receive changes and updates to travel advisories and warnings. You can register online or in person at a Canadian government office abroad.