Masterherald News

As terrorist groups like the Islamic State, al-Qaeda and Boko Haram make headlines, travelers are understandably concerned about the possibility of terrorism affecting their plans. The U.S. Department of State advised “worldwide caution” in 2015, urging American citizens to stay vigilant.

It’s good to remember, however, that statistically the chances of being injured or killed by a terrorist attack are extremely low. One good way to protect yourself is to purchase international travel insurance that includes terrorism coverage. We’ll take a look at how you can stay safe and how travel insurance covers terrorism.

Avoiding terrorism when you travel

“The first and best protection is to avoid travel to areas where there has been a persistent record of terrorist attacks or kidnappings,” the U.S. Department of State advises. If you’re not sure about the safety of your destination, check the State Department’s website to see if any travel warnings or travel alerts have been issued.

Terrorist acts, by their very nature, are unpredictable. But there are ways to reduce the risk of being directly targeted by terrorists, the State Department says. For the most part, these are common-sense precautions: dress inconspicuously, observe your surroundings so you can be aware of anyone following you, don’t get into unlicensed cabs and report suspicious activity.

Does travel insurance cover trip cancellation because of a terrorist incident?

Allianz Global Assistance’s travel insurance considers international and domestic terrorism to be a covered reason for trip cancellation if a terrorist event happens at your U.S. or foreign destination within 30 days of the day you’re scheduled to arrive. However, you’re not covered if there has been a terrorist event at your international destination generally within the 30 days before your plan’s effective date. So how does terrorism insurance work?
Let’s consider some examples:

• You buy travel insurance for a week sightseeing in London with your daughter. Then the news reports that a bomb has gone off on the Underground in an apparent terrorist attack. If you decide to cancel your trip, your travel insurance would reimburse you for nonrefundable travel costs, because you purchased insurance before any incident occurred.


• A bus explodes in Tel Aviv two weeks before your planned tour of Israel. “Yikes,” you think. “Guess insurance is a good idea.” You immediately purchase a travel insurance plan to protect your trip. Shortly before you leave, another bus bombing occurs and you decide you’re going to cancel the trip. Your travel insurance would not cover your trip cancellation, because you purchased the plan within 30 days of a terrorist incident occurring at your destination.

Does travel insurance cover terrorist attacks on airplanes?

If a terrorist attack causes your airline or other carrier to stop services for 24 hours, that’s considered a covered reason for trip cancellation or interruption by Allianz Global Assistance. If you or a travel companion is hijacked, that’s also a covered reason for trip cancellation. In situations like these, contact Allianz Global Assistance’s global travel assistance hotline for help, if possible. Allianz Global Assistance’s travel experts can help you contact local authorities or the United States embassy and make alternate travel arrangements to get home safely.

If a terrorist attack occurs on another airplane before your scheduled trip, that’s not a covered reason for trip cancellation.

What if I’m afraid a terrorist incident will occur?

Shortly before your scheduled trip to visit family in the Philippines, a separatist group begins making terrorist threats. The State Department issues a travel alert urging caution. You’re considering calling off the trip and rescheduling it for later in the year. Will travel insurance cover your trip cancellation?

No, because no incident has occurred. The fear or threat of a terrorist incident at your destination is not a covered reason for trip cancellation. However, you should use common sense and caution when making your travel arrangements.

Does travel insurance cover riots or other violence?

You’ve just arrived in Cairo and are preparing to depart for a grand Egypt tour. Then a riot breaks out in Tahrir Square as protesters and police clash. Terrified, you retreat to your hotel room and begin making plans to fly home. Will travel insurance cover your trip cancellation?

No, because civil unrest is not the same thing as terrorism. Allianz Global Assistance’s travel insurance defines terrorism specifically as “when an organized terrorist group, as defined by the U.S. State Department, injures or kills people or damages property to achieve a political, ethnic or religious goal or result.” Terrorist events don’t include general civil protest, unrest, rioting or acts of war. If a strike or unrest results in your carrier or tour operator ceasing services for 24 hours, then that could be considered a covered reason for trip cancellation.

Will travel insurance cover me if I’m kidnapped?

While hijacking is considered a covered reason for trip cancellation, travel insurance from Allianz Global Assistance does not include any coverage for kidnapping or extortion. If you are traveling to a destination where kidnappings are common, or if you have reason to fear you may be targeted, consider buying specialized travel insurance that includes coverage for kidnapping, unlawful detention and ransom demands.

As always, Allianz Global Assistance urges you to use caution when traveling. Read your insurance policy documents carefully, and call Allianz Global Assistance if you have questions about terrorism coverage or anything else.