The escalating situation in the Middle East has had a serious impact on many frequent international travelers. For those that have plans that include the Middle East there are now concerns about an increase in terrorist attacks, getting stranded by air travel shutting down and getting caught up in civil unrest. Currently Westerners are particularly vulnerable.
What is Force Majorie?
People buy insurance for all kinds of reasons. Auto insurance, health, home, travel and more and they are all based on a contract. In many of those legal contracts are conditions and events where the insurance company does not have to pay or only a limited percentage. They regularly include war, some natural disasters and specific failures on the part of the person insured. Often the term “force majeure” comes up.
Most Travel insurance policies typically have a section called “force majeure,” which refers to unforeseeable circumstances beyond the control of the policyholder, the travel vendor or the insurance company that prevent the policyholder from traveling , completing their trip or deciding things look too unsafe. The term is a dubious legal expression that is often ignored or misunderstood by the individual involved in buying the contract. It originates from the 1804 Code Napoleon, and refers to occurrences beyond the reasonable control of a party to a contract that prevents fulfillment.
In the context of travel insurance, force majeure events can include natural disasters, acts of terrorism, political unrest, war, or other events that make it impossible or unsafe to travel.
If a force majeure event occurs, the policyholder may be eligible for coverage under their travel insurance policy, depending on the specific terms and conditions stated in the policy. It’s important to carefully review your policy and understand what is and isn’t covered in the event of a force majeure event.
Recently, because of Covid, there have been a number of recommendations on what to look for in travel insurance that includes “cancel for any reason” suggesting that technically sidesteps force majeure. It would seem an excellent option – but is it? In the insurance companies perfect world, a premium equivalent to the total cost of the trip would be best for them. In the travelers perfect world insurance cost wouldn’t change and would include “cancel for any reason” with a full cost pay out. Neither is ever going to happen but there are options to consider and be sure that the cost is worth your risk.
“Cancel for any reason” (CFAR) travel insurance is a type of travel insurance that provides the most flexibility when it comes to canceling your trip. Unlike traditional travel insurance, which typically only covers specific reasons for cancellation such as illness or injury, CFAR insurance allows you to cancel your trip for any reason and usually receive a partial refund.
With CFAR insurance, you can cancel your trip for reasons that are not typically covered by standard travel insurance policies, such as changing your mind, work-related issues, or simply wanting to avoid potential risks or uncertainties. It provides peace of mind and allows you to recoup a portion of your prepaid expenses if you decide to cancel your trip for any reason.
It’s important to note that CFAR insurance usually needs to be purchased within a certain timeframe after making your initial trip deposit, and it typically covers a percentage (usually around 50-75%) of your non-refundable trip costs. Additionally, the coverage amount and eligibility criteria may vary depending on the insurance provider.
In selecting travel insurance you also have the option of buying a complete medical plan (Geoblue) , a medical evacuation plan (EA+) or a complete annual insurance policy (Allianz, Amex) that offer some coverage in virtually all areas. One caution is that most annual policies only provide coverage while on trips of less than 60 days each. If you’re considering CFAR travel insurance, it’s recommended to carefully review the policy terms and conditions, as well as compare different insurance providers to find the best coverage and rates for your specific needs.
The Intentional Travelers 