"Cancel for work reasons" travel insurance is appropriate if there is any possibility that you may not be able to go on your trip due to work reasons, and you have prepaid, nonrefundable trip expenses.
Many people plan their vacations well in advance, sometimes several months or even a year or two. However, as is the reality of life, sometimes work situations arise, and they can’t go on their trip.
There are several work-related reasons that are usually already included in standard travel insurance with trip cancellation coverage:
- Loss of employment due to termination or layoff
- Military duty
- Permanent transfer of employment
You don’t have to buy “cancel for work reasons” travel insurance for this kind of coverage, but for additional reasons, you should buy such a policy.
While most policies don’t include this, some policies do provide coverage for "cancel for work reasons", and some provide it as an optional upgrade.
However, most policies will provide such coverage only if you buy travel insurance within a certain time frame (such as from seven days to twenty one days, depending on the policy) of the initial trip deposit.
Additionally, most policies will not provide “cancel for work reasons” coverage to self-employed individuals or partners in a partnership.
In any case, the possibility that you may not be able to go on your trip due to work-related reasons must be unforeseen at the time of purchasing travel insurance. If you already foresee these work-related reasons, travel insurance will not cover you. Also, you must already have an approved vacation by the company. If you are merely worried that your company may not approve your vacation, you can’t book the trip and then expect the insurance to reimburse you if your vacation request is denied.
"Cancel for Work Reasons" Scenarios
Even though the exact “cancel for work reasons” may vary by the policy, the following are the most common:
- A crucial project or assignment has come up.
- Your replacement (during your scheduled vacation) has suddenly fallen ill or has become injured, and you are now required to work during that time.
- You are required to work due to a work-schedule change.
- You are directly involved in a company merger or acquisition, product recall, or bankruptcy proceedings.
- Your place of business has become unsuitable for work due to a natural disaster, fire, flood, vandalism or burglary.
- You are transferred to a job at least 250 miles away, and you have to change your primary residence.
In the above scenarios, you generally include you or your travel companion, irrespective of whether your traveling companion is insured.
If you are not sure whether you are covered in the event of a specific scenario, look into the specific wording of the particular insurance plan you are planning to purchase. If it is not listed as a covered reason, you will not be covered.
Please note that "cancel for work reasons" does not cover you against the possibility of getting a job. In other words, if you plan a vacation because you are unemployed and then get a job, you are not covered.
To make a trip-cancellation claim for "cancel for work reasons", you may need evidence in the form of a notarized statement from an officer of your company.
As each product is different in details, you should compare various travel insurance products on this website to make sure you are purchasing the most suitable one for your needs.
Even if particular travel insurance provides "cancel for work reasons" coverage, you should verify whether it provides 100 percent reimbursement or not. You should also verify what prepaid, nonrefundable trip costs are included or excluded in the plan.