Many hundreds if not thousands of people are cancelling future flights and holiday bookings, made some time ago, where there is no opportunity to travel in light of lockdown across Europe. Insurers are rapidly withdrawing travel insurance cover for all new policies and for travellers hoping to reply on their travel insurance to recoup money lost due to the coronavirus pandemic will have to navigate through their policies to understand exactly what is covered and what is not.

The vast majority of travellers try to think of all the potential problems that they may face when they are travelling far from home. Many wisely take out medical insurance, particularly individuals with pre-existing health issues, as the cost of medical care in the event of an accident or illness abroad is viewed as one of the biggest risks to travellers. Insurance can be bought as a single policy for a one-off trip or travellers may choose to take out a policy that covers several years. Scrutinising the small print in their insurance policy is probably not a top priority for many people, a cursory read through would be the best most would manage.

The UK has the largest insurance market in Europe and the fourth largest globally with London the international capital of speciality insurance and reinsurance, with the reputation of Lloyd’s of London topping the insurance sector.

Information filtering through from travellers attempting to rely on their insurance policies suggests that at least one company that offers insurance to the clients of a number of online travel booking agents, is attempting to avoid paying out for claims due to the coronavirus pandemic by rewriting their terms and voiding their entire liability, claiming “unprecedented circumstances”. Worse still the company is USA based and not subject to the Financial Conduct Authority (FCA) that regulates insurance products the UK, therefore there is very little opportunity for the travellers who believed that they were covered by the policies issued by the firm to obtain compensation. The marketing promises of refunds for “any reason no questions asked” are simply being swept away. It is also fair to say that it is highly unlikely that many travellers would research their travel insurer and take note of their regulating body and how they would obtain compensation, just in case.

In order to know whether your insurer has actually got a “get out of jail” clause in their policy or if they are just relying on bluff and bluster you will need the assistance of a legal expert, not only with a thorough knowledge of the insurance sector but also with experience of negotiating with insurers and who is familiar with the strategies commonly used to avoid settlement. The lawyers in the Legal Law Limited insurance and reassurance team have extensive experience in obtaining the very best settlements for our clients in a variety of types of claims against insurers. Legal Law Limited has an enviable record of success in this notoriously difficult industry sector renowned for swerving liability.

It is disappointing to note that Zurich, a global insurer of 140 years standing, said in the Observer, “that it was not possible to list all potential exclusions, so customers are instead informed of specific circumstances where cancellation is covered”. Not only is this extremely unhelpful to the purchaser of policy it throws into the equation vagueness and confusion.

However far back in the small print, there is always the possibility that there is a clause veiled in ambiguity that can be pointed to by the insurer when policy holders attempt to claim for something the insurer is not keen to pay out, however nebulously the clause is drafted.