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Coronavirus (COVID-19) and Travel Insurance
Travellers have been disrupted by Coronavirus (COVID-19) due to travel restrictions, while others are reluctant to travel due to the increase risk that the disease poses.
The purpose of this paper is to look at the cover available under two types of travel insurance.
Travel Insurance
There are several types of travel insurance policies in the Australian market and like many classes of insurance they vary considerably. There are two broad categories of travel insurance and I cover each below.
Leisure Travel
These policies are designed to cover you for a particular trip. Some policies have a blanket exclusion for pandemics others do provide coverage where the travel warning issued by the Australian government reaches a certain level eg. ‘Level 4 – Do Not Travel’.
If you elect not to travel due to a fear of the consequences, but the Travel Warning has not reached Level 4, then your insurer is unlikely to provide coverage for any lost fares, accommodation etc, nor are the travel providers.
Even if you do not have cover in place to cover a cancellation or postponement of the trip, we do urge you to exercise caution and do not put yourself outside your comfort zone. You can always save up the money again that you may lose in cancelling the trip. Massive uninsured medical bills or being caught up in a quarantine situation as we have seen happen to some travellers may not be so easy to get over.
Another important point is since Coronavirus has become a listed disease by the Australian Government any requests for leisure travel insurance since the end of January are likely to have a blanket exclusion for any losses arising from the disease.
Corporate Travel
Unlike leisure travel these policies are designed to cover all travel during the period of insurance.
Quality corporate travel insurance policies that were taken out or renewed before Coronavirus became a listed disease under the Biosecurity Act 2015 are likely to provide coverage for cancellation of trips to countries that are at Level 4 – Do Not Travel.
Again, a decision not to travel, where the travel warning level is not at the trigger level stated in your corporate travel policy, will not under normal circumstances activate the insurance coverage.
Now that Coronavirus has reached the listed disease level, most insurers are placing a specific exclusion for losses occasioned by or happening through Coronavirus. This may be lifted once the disease is brought under control but only time will tell
Management Liability insurance is designed to provide protection to both the business and its directors or officers for claims of wrongful acts in the management of the business.
A business insurance pack can provide cover for your business premises and contents, against loss, damage, theft or financial loss from an insured interruption to the business.
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Health and Safety tips
How to avoid infection:
Here is a short list of ways to minimise the spread of Coronavirus
- Practice good personal hygiene.
- Avoid contact with anyone with or suspected of having Coronavirus.
- Boost your immune system by eating well, exercising, having enough sleep, and keeping your stress levels under control.
- Cancel or delay any travel to affected areas until the crisis is over
Keep Informed:
Everyone should remain alert for updates and advice from the relevant authorities on additional steps to manage the spread of the disease.
The health department in each state is providing excellent resources and advice and regular updates.
Before travelling, check for and take the advice of any travel warnings on https://www.smartraveller.gov.au/news-and-updates/coronavirus-covid-19
General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.
All information above has been provided by the author.
All information above has been provided by the author.
Adroit Insurance & Risk, ABN 75 078972 700, AFSL 244 348
This article originally appeared on Adroit Insurance & Risk Blog and has been published here with permission.
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