Cancellation and interruption for any reason

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What do you want to know

  • The COVID-19 pandemic has made business travel much less predictable.
  • Travel insurance can now protect you against trip interruptions as well as cancellations.
  • IFAR benefits help you with changes you make, rather than changes made by travel service providers.

In recent years, significant changes in travel have changed the travel landscape for life and annuity advisors that we once knew.

The lingering effects and uncertainties of the COVID-19 pandemic and new variants remain, along with war abroad and fears that it could spread.

Customers of financial services companies experienced increased volatility.

Companies like yours may have encountered more uncertainty in their own operations.

As the world remains in a state of flux when it comes to travel, how can financial services firms move travel plans forward while ensuring their employees’ travel is well protected?

To help with difficult travel situations, the travel insurance industry offers optional benefits that allow for trip cancellation or interruption for any reason not otherwise covered: cancellation for any reason (CFAR) and a new guarantee, interruption for any reason (IFAR).

At Seven Corners, which is a travel insurance provider, we offer both coverage options.

Our team has seen an increase in the number of calls from travelers requesting information about CFAR and IFAR as well as an increase in the popularity of these options.

In fact, we’ve seen a 180% increase in plan sales with CFAR in 2020 compared to 2019, and due to the still uncertain nature of travel, we continue to see an increase in CFAR purchases over that which was observed before the pandemic.

Due to questions about these benefits and the coverage they provide Travel Advisors in the event of unforeseen circumstances, our team has put together information on what CFAR and IFAR are, what they cover, and how adding these options could be useful when planning a trip to visit a major client or attend an industry conference.

What is CFAR?

CFAR is an optional benefit offered on some travel protection plans that allows travelers to cancel trips for any reason not otherwise covered.

With it, customers can be reimbursed up to 75% of their non-refundable travel expenses if the CFAR benefit is purchased within 20 days of the initial trip deposit.

Travelers must also insure subsequent travel arrangements added to their trip within 15 days of the date they purchased them.

For example, if a traveler needs to extend their trip for a new conference, they can add the additional cost for the conference and the airfare increase within 15 days of the date they paid for each. .

It is important to remember that the CFAR covers non-refundable travel expenses; if the cost of a trip is reimbursable, it is not necessary to insure it.

It is also important to note that CFAR does not cover travel arrangements that are not provided by the travel supplier or failure of the travel supplier to provide travel arrangements due to cessation of business for any reason. that is.

Indeed, CFAR was designed for travelers to cancel their trip for whatever reason they want, not because a travel provider is forcing them to cancel.

Examples of when CFAR would be useful

Here are examples of situations where CFAR could help business travelers:

  • Employees are concerned about a new variant of COVID-19 at their destination and want the option to cancel their trip if transmission rates increase and they no longer feel safe to travel.
  • A female single parent has difficulty finding a caregiver when she travels for business and she fears she will have to cancel her trip if she does not find a trustworthy caregiver to care for her children before his next trip.

Additionally, if a business traveler wishes to have the option of canceling a trip due to the current war in Ukraine, they can use CFAR, the only option available to obtain coverage for war cancellations.

Their reason for canceling a trip could include, but not be limited to, fear of traveling due to war.

Travelers should consult the plan document for their state of residence for purchase requirements and to apply for CFAR.

What is IFAR?

IFAR is an important option for hedging plans in today’s travel climate, as it gives travelers the flexibility to end their trip once it has already begun.

This is an optional benefit that reimburses up to 75% of unused, non-refundable insured travel expenses.

It may also cover additional transportation costs to rejoin a trip if a traveler departs after their scheduled departure date, rejoins their trip from the point where they left off until the next scheduled destination, or proceeds to their destination of return or final trip originally planned.

There are several requirements for IFAR as it extends travel interruption coverage beyond the list of covered reasons.

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