Trip cancellation insurance: what to do in the event of a travel advisory

Why you should have insurance for the unexpected

Trip cancellation and interruption insurance is designed to reimburse prepaid, non-refundable expenses (flights, packages, accommodations, excursions) if you have to cancel or interrupt your stay for an eligible reason.

What is usually covered

When the unexpected occurs before or during the trip, your contract generally covers the following expenses:

• Cancellation fees from airlines or tour operators
• Non-refundable prepaid expenses (hotel rooms, cruises, excursions)
• Reasonable additional costs for returning early (in case of interruption)

What situations are generally eligible?

Each trip cancellation insurance contract has its own criteria, but situations that are frequently covered include:

• Sudden illness or injury of the insured or an eligible relative
• A death in the immediate family
• A major disaster (fire, major water damage) at your home

Important to know: The unpredictability of the situation is crucial. If the event was known or foreseeable at the time you purchased the trip or insurance contract, you may not be eligible.

The impact of government advisories on trip cancellation

The government advisories published on travel.gc.ca define risk levels for travel destinations. They may recommend "Exercise a high degree of caution", "Avoid non-essential travel", or even "Avoid all travel". In the last two cases, a change in the advisory may affect whether you are eligible for compensation after cancellation.

What a "Avoid non-essential travel" advisory means

When Canada issues an "Avoid non-essential travel" advisory, it strongly advises against tourist travel to a destination for safety reasons (violence, disasters, epidemics, etc.). This travel warning signals an increased risk and may trigger specific clauses in insurance contracts.

Why some cancellations are no longer eligible after an advisory

Many policies specify that if you purchase your trip or insurance after a travel advisory is published, the event becomes a known circumstance: it is no longer unpredictable. As a result, cancellation and costs related to a reason already known at the time of purchase may not be covered.

The concept of a "known circumstance"

The term "known circumstance" means any event publicly announced or reasonably foreseeable at the time you purchase your trip or contract. Many insurers rely on notification dates (government, health authorities, providers) and public communications to determine eligibility.

To stay up to date, you can consult resources such as travel.gc.ca and insurer travel advisory pages.

When does an event become a known circumstance?

The event is deemed to be “known” from the date and time of publication.

• An official notice is issued (e.g.: "Avoid non-essential travel")
• A major public announcement is made: an imminent volcanic eruption, an announced strike, a confirmed airport closure, etc.

If you make your purchase after the notification is published, the event will unfortunately no longer qualify as a reason for cancellation. Insurance is based on risk. If the event was known at the time of purchase, the insurer may conclude that you accepted the risk. Claims based solely on such reasons could therefore be denied.

Travel destinations: stay up to date

For popular vacation destinations such as Cuba and Mexico, safety advisories can change rapidly. If the notice changes from "Exercise a high degree of caution" to "Avoid non-essential travel", the date you purchased your insurance could make all the difference:

If you take out cancellation insurance when circumstances are favourable for travel, i.e. before the date the advisory is changed, cancellation may be eligible if your contract includes eligible reasons related to safety.

However, if you take out your insurance after a public warning is issued, then the event is a known circumstance. A cancellation based on this advisory will probably be inadmissible.

Avoid unpleasant surprises

Before you run into trouble, taking a few simple precautions can make all the difference.

Check what your credit card covers

Many credit cards include trip cancellation insurance, but with limited coverage. Find out more about

• The maximum reimbursable amount per person per trip
• The exact eligible reasons (health, safety, employment, loss)
• The obligation to pay for the entire trip with your card

In many cases, dedicated travel insurance will protect you better.

Protect yourself sooner rather than later

Ideally, you should buy your travel insurance on the same day you purchase your trip, or shortly afterwards, when no travel advisories are in effect.

Avoid waiting for signs of risk (rumors of strikes, civil tensions, outbreaks). If the announcement becomes official quickly, it will be a known circumstance and you will no longer be eligible.

Better safe than sorry

Carefully plan out what you’ll need to do before you leave. To make sure you don’t forget anything, it’s a good idea to use a checklist. Finally, take precautions to make sure an illness doesn’t spoil your trip or cut it short.

1. What is a known circumstance and how does it influence a claim?
A “known circumstance” is a publicly announced event, like a government advisory. If an announcement is made before you purchase your trip or insurance, cancellation for this reason alone may be ineligible.

2. Am I covered if the government issues an "Avoid non-essential travel" advisory?
It depends on the date: if you bought before the advisory was posted and your policy includes this type of qualifying reason, you may be covered. If you bought after, this is generally not eligible.

3. Is it possible to cancel for safety reasons if the event was known before I purchased?
Usually not. Insurance is based on risk. If the risk was known, cancellation related to this risk is often excluded.

4. What are the most common reasons for cancelling a trip?
A sudden illness or injury to the insured or an eligible relative, a death in the family, a disaster at home, and certain other circumstances depending on your contract.