In light of the worldwide Coronavirus pandemic, millions of people have had to put vacation plans on hold and cancel hotel, flight, car rental, cruise, or other reservations due to recently implemented travel restrictions. In many cases, there was no choice. The travel operator, such as a cruise line, canceled the trip. Fortunately, many have been able to get refunds for cancellation costs and fees. Unfortunately, some vacationers who purchased travel insurance for their now-cancelled plans have been met with denials from insurance companies upon attempting to recoup what they paid.
If your travel insurance claim for a trip cancelled due to COVID-19 was denied, you may have legal grounds to contest that decision. Even if you have not yet filed a travel insurance claim or have already received your money back from the airline, hotel, or other service you booked with, a qualified lawyer could help you obtain reimbursement for insurance coverage you no longer need.
Because there was no trip to insure in the first place, due to Coronavirus and related government orders and corporate decisions, there really is no risk for this insurance to cover. And because of that, travelers who purchased travel insurance may be entitled legally to a refund of the insurance premium they paid.
How Does Travel Insurance Work?
When someone buys a plane ticket, books a room in a hotel, or makes a reservation for a resort stay or ocean cruise, any travel insurance they purchase at the same time is meant to cover financial losses they may suffer if their plans are impacted by illness, injury, or some other outside influence. Essentially, the travel insurance company gets paid a premium to assume a certain amount of risk on behalf of a traveler. The insurance company makes money if everything proceeds as planned, and the traveler is protected if something unforeseen happens.
Any insurance is basically a contract. The consumer pays money, a premium, and in exchange, the insurance company accepts risk. If the risk disappears, as in this case because Coronavirus resulted in massive trip cancelations by trip operators, then there really is no risk to insure. Under these circumstances, the travel insurance company may be trying to keep money it did not and cannot earn. The purpose and essence of the insurance contract is frustrated.
Since Coronavirus has resulted in numerous travel interruptions in Georgia and elsewhere, anyone who cancels travel plans and has their deposits and other payments refunded is no longer at risk of a financial loss. In other words, the basic purpose of the insurance contract no longer applies to many would-be travelers right now.
Despite this fact, many travel insurance companies are still refusing to reimburse travelers whose plans were impacted by COVID-19, meaning that they are keeping policy holders’ money for something that is beyond their control. This is not right, and depending on the circumstances, the denial of a travel insurance claim is something you could potentially take legal action to resolve with the help of an attorney.
Problems with Receiving Travel Insurance Refunds
While some travel insurance companies in Georgia have done the right thing and refunded the premiums people paid for travel plans upended by Coronavirus, others are only offering partial refunds, vouchers for future trips, or no refund at all. Unfortunately, many standard travel insurance plans do not cover pandemic-related cancellations, and some are even limiting access to insurance plans that allow cancellation at any time.
Whether someone is seeking a refund of their entire trip or just their travel insurance premium, they should not be subjected to poor treatment or denied refunds based on unfair technicalities. Talking to a COVID-19 travel insurance refund lawyer could help clarify what options are available in a particular situation. For example, many policy holders are having to deal with cancelled cruise travel insurance and the hurdles that are involved with obtaining a refund.
Ask an Attorney about Contesting Coronavirus-Related Travel Insurance Refund Denials
Because insurance companies are most profitable when they do not have to pay out on any policies, their first instinct is often to deny claims from policy holders on unreasonable or underhanded grounds. If you were affected by a refund denial after having your trip cancelled due to the Coronavirus help is available.
We are aware of various regional travel insurers who have refused to provide refunds, and we are investigating numerous claims of refunds related to COVID-19 being withheld. If you would like to discuss your legal options, consider scheduling an initial consultation with our firm regarding your Coronavirus travel insurance refund denial.