More insurers refusing to cover COVID-19 travel

TORONTO The list of insurance companies that will no longer pay out on policies for travel cancelled due to the spread of the novel coronavirus is growing.

On Wednesday, as the World Health Organization dubbed the infectious disease named COVID-19 a global pandemic, Allianz Global Assistance became the latest insurer to determine the fast-spreading coronavirus is a “known event” that will no longer be covered by trip cancellation or interruption policies. “As a result, for Allianz Global Assistance policies purchased on or after March 11, trip cancellation and interruption claims related to coronavirus will not be payable,” said Dan Keon, a spokesperson for the insurer.

Traditional policies, such as the ones still offered by companies including RBC Insurance and TD Insurance, cover trips cancelled or interrupted as a result of the Canadian government imposing a new travel advisory urging against non-essential travel to a country or region, even in the case of COVID-19. In such cases, the trip insurance must have been purchased prior to the travel advisory being invoked. Gillian McArdle, a spokesperson for RBC, said on Wednesday there have been no changes to RBC Insurance travel policies or the cost of getting such insurance.

Elizabeth Goldenshtein, a spokesperson for TD Insurance, also said no changes had been made to travel policies in relation to the new coronavirus. “However, we are monitoring the situation and evaluating our policies as this global event continues to evolve.”

Canada has so far determined that only three countries — China, Iran and Italy — should be subject to its Level 3 advisory warning travellers to avoid non-essential travel there. The government is also recommending Canadians avoid “all cruise ship travel due to the ongoing COVID -19 outbreak.”

The growing divergence in how insurers will cover claims tied to the virus appeared last week, ahead of the WHO’s declaration. Manulife, a major Canadian insurer, said travel cancellation or interruption policies sold on or after March 5 would not cover COVID-19 because it was a “known event.”

A day earlier, Canadian travel insurance seller TuGo made a similar determination covering policies bought on or after March 4.