Last updated: 12:54 PM ET, Mon September 19 2016

Travel Insurance Providers Note Increased Concern Over NYC Terror

Impacting Travel | Allianz Global Assistance | Brian Major | September 19, 2016

Travel Insurance Providers Note Increased Concern Over NYC Terror

 Photo by Wener Kunz via Flickr 

Travel insurance providers say Ahmad Khan Rahami’s pursuit and capture are likely to increase growing traveler concerns regarding terrorism.

“We have seen an increase in the number of policies purchased with CFAR since the Paris attacks in November and have already received several inquiries today from concerned policyholders traveling to and from the Northeast,” said Jason Schreier, CEO of APRIL USA Travel Protection. “Fortunately, none of our policyholders were injured over the weekend.

“In this particular instance, we are still waiting to find out whether the incidents which took place in New York and New Jersey this weekend will be officially declared as Acts of Terror,” said Schreier.

Others said the attacks point out travel insurance coverage’s increasing importance. “The bombings in New York and New Jersey show that terror can happen anywhere,” said Daniel Durazo, a spokesman for Allianz Assistance USA. “In this environment, travel insurance has become more valuable than ever.”

Both Schrier and Durazo said a variety of coverages are available for travelers specifically concerned with terrorism.

“Trip cancellation or trip interruption benefits resulting from an incident which has been classified by the State Department as an Act of Terrorism are covered under APRIL’s Stress Less benefits program, said Schreier.  

“Terrorism is covered in many travel insurance policies, allowing consumers to cancel their trip if there has been a terror incident at their destination within 30 days of their planned arrival,” Durazo added.

Travelers appear to be increasingly concerned with terrorism’s impact their trips, Durazo said. “Sales of Allianz Travel Insurance are up by about 15 percent over last year and sales of our “Cancel Anytime” policies are up by about 20 percent,” he said.

“We’ve had significant increases in interest in both traditional travel insurance policies and Cancel Anytime,” which Durazo said covers “any unforeseen” travel delay. “We think that the increase in interest in travel insurance is due to the increased uncertainty travelers are facing in the world,” he added.

Schreier pointed out suppliers do not offer policies that cover “fear” of terrorist acts: “One important distinction to note here is that, as an industry standard, travel insurance policies do not cover ‘fear of traveling’ due to concerns involving potential acts of terrorism.

He excluded trip-cancellation policies based on state department advisories, including instances where intelligence agencies have credible information on an impending attack.

“Unfortunately, many travel insurance policies are not very clear about the precise circumstances in which coverage is triggered, and policyholders often fail to read or have difficulty comprehending the fine print,” Schreier said.


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