Certified Travel Agent Practice Test

Can a client be covered under most travel insurance policies if his employer cancels his vacation?

1. Yes

2. No

3. Only if he provides a letter from his employer

4. Only if the cancellation is due to a business requirement

The correct answer is: No

Typically, most travel insurance policies do not cover cancellations resulting from an employer's decision unless specified in the terms of the policy. Commonly, travel insurance is designed to reimburse travelers for unexpected situations such as personal illness, injury, or natural disasters that prevent travel. Employer-related cancellations are usually seen as a personal risk that individuals accept when they choose to plan vacations around work commitments. While some plans may allow for trip cancellation under very specific circumstances related to employment, this is not standard across all policies. Clients should carefully review their travel insurance policy’s details to understand what conditions would be covered and if there are any provisions specifically addressing cancellation due to work commitments. It's always advisable to consult with the insurance provider to clarify coverage details.