Cuba Travel Ban: What Does Travel Insurance Cover?

Cruise ships and group tours have been banned from visiting Cuba, per new regulations from the Trump Administration (although some tour operators, like Apple Leisure Group, fall under a category that still permits their groups to visit). Nonetheless, as a result, an estimated 800,000 cruise passenger bookings will be affected, according to Cruise Lines International Association (CLIA).

Stan Sandberg, co-founder of TravelInsurance.com shared helpful information about travel insurance for travelers and cruisers whose plans are affected by the travel ban.

Unfortunately, travelers who purchased a travel insurance policy—even before the travel ban was put into effect—may be not covered if they want to cancel because their cruise is no longer able to travel to Cuba," he said. "Travel insurance does not cover cancellation due to an itinerary change by the cruise line.

Travel insurance would provide coverage, however, if the traveler had purchased a Cancel For Any Reason (CFAR) upgrade, which allows the insured to cancel their trip for any reason. CFAR is typically only available as an option at the time the policy is purchased and requires the traveler to insure 100 percent of their pre-paid, non-refundable trip costs. And, importantly, the traveler must purchases the policy within a set number of days (usually seven to 21 days) of their initial trip payment date. With CFAR, either 50 or 75 percent of the trip costs will be reimbursed, depending on the plan selected.

Typically, a comprehensive travel insurance plan will range from 4 to 8 percent of the total trip costs. For more information, visit TravelInsurance.com.

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