Coverage for a COVID+ test before departure?

[Beav1279]

Now that cruise lines are starting to release their guidelines to return to cruising, I have an insurance question. One of the requirements to cruise may be to have a negative COVID test within 5 days of cruise departure. Are there any insurance plans out there that would cover your trip if you end up with COVID prior to departure? I continue to see more and more people who are completely asymptomatic and I'm worried about losing my money for my cruise and airfare. Thank you!

[Hlitner]

On 9/24/2020 at 11:21 AM, Beav1279 said:

Now that cruise lines are starting to release their guidelines to return to cruising, I have an insurance question. One of the requirements to cruise may be to have a negative COVID test within 5 days of cruise departure. Are there any insurance plans out there that would cover your trip if you end up with COVID prior to departure? I continue to see more and more people who are completely asymptomatic and I'm worried about losing my money for my cruise and airfare. Thank you!

I think you ask a terrific question and we think the real answer is still a work in progress for the cruise lines.  But perhaps you need to break out the question into several sub-categories which are the cruise fare, airline cost, and other related travel expenses.   If a cruise line denies you boarding for COVID or most other reasons they are obligated to refund your entire cruise fare.  They may well try to avoid a refund and offer other options (i.e. future cruise credits) but this does not take away their legal obligation to refund your fare since they have not provided the service for which you paid/contracted.  

 

But the airline issue is a potential mess and may well depend on whether you booked your air through the cruise line or did it on your own.  If you booked your own air the cruise line would likely feel no obligation to offer help or a refund.  Many airlines will now allow folks to cancel for COVID (you may well need a Doctor's note) but you would normally get an airline voucher and not a refund.  Other expenses (such as hotels) would likely be out of your pocket.

 

Finding a third party insurance plan to cover all your potential loses might be a challenge.  Insurance companies will not generally reimburse airfare if the airline issues a voucher.  Expert travel insurance brokers can certainly answer the specific insurance questions and steer you to the best insurance options.  Just keep in mind that as you expand your options for insurance reimbursement you also will increase the premium you pay for insurance.  One can insure just about anything if they are willing to pay the price.....but often that price will make the insurance more of a luxury.  When it comes to insurance folks should carefully read the policies and assess the cost/benefit vis-a-vis their own circumstances and risk tolerance.

 

Hank

[isosika]

On 9/27/2020 at 12:15 PM, Hlitner said:

When it comes to insurance folks should carefully read the policies and assess the cost/benefit vis-a-vis their own circumstances and risk tolerance.

 

Keep in mind that even if you "think" you can understand the legal language that the insurance contract will be written in, what you think it says and what the insurance company thinks it says might be two different things. Insurance companies don't make money by paying out claims.

 

[Hlitner]

Just now, isosika said:

 

Keep in mind that even if you "think" you can understand the legal language that the insurance contract will be written in, what you think it says and what the insurance company thinks it says might be two different things. Insurance companies don't make money by paying out claims.

 

LOL  tis true.  I spent over 35 years in the Medical Insurance (government) industry so I do have a different "take" on insurance then any folks.  The reality is that most (and there are always exceptions) insurance companies are pretty reasonable within the scope of their policies, but claims examiners/processors look at claims with a jaundiced eye because of the amount of fraudulent and exaggerated claims.  We always tell folks that when it comes to filing claims it is very helpful if you carefully document everything, even if you have to pay a little extra for copies of documents.  It is also helpful to involve the insurance company at an early stage, when you are dealing with a major issue.  So, for example, when DW was injured in Asia at one point when she was having outpatient surgery in Osaka....I was standing outside the Procedure Room on the phone with our medical insurance provider (located in Philadelphia).  Because of this early communication, later arranging for medical evacuation was relatively straightforward because I already had a claim number and established a phone relationship with the assigned case manager.   We also insisted in detailed medical records from the hospital (before we left the facility) and I even had digital copies (on a CD) of X-rays, CT Scans, etc.  On Princess we had to pay extra (later reimbursed by our insurer) for the most detailed medical records.  

 

When folks file claims they need to understand that more (in terms of documentation) is better.  While insurance companies can sometimes be difficult (and too darn slow) most are very cooperative when claimants have decent documentation.  I would add that when I choose insurance companies I do think it terms of how they process claims.  Some travel insurance policies outsource claims processing to a third party which can complicate relationships.  I am not a big fan of the cruise line cancellation policies which simply tack on minimal (often $10,000) medical insurance.  The Cruise Lines are not insurance companies (they often disclose that in their fine print) and most of their cancelation policies are not insurance (in the true sense of the word) but rather more of a voucher system (i.e. they always prefer to issue future cruise credits instead of cash).

 

So lets understand something about insurance in the USA (I cannot speak about Canada and other countries).  In the USA Insurance companies are licensed/regulated by the States...no the Federal Government.  So insurers actually must be licensed in all 50 States to sell insurance nationwide.  For example, GeoBlue (which is a decent provider part of the BC/BS system) is currently not licensed in a few States which means residents of those States cannot buy their policies.  The reasons an insurer may not be licensed in one or more States can often be more of a political issue then anything having to do with the quality of their product.   One advantage of our system in the USA is that if you do have a real issue with an insurance company you can file an official complaint with your own States Insurance Commission/Board.  Most States actually take complaints seriously and do follow-up.

 

Hank