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What Is Cancellation Insurance?

Cancellation insurance is available for purchase to prevent losses caused by changes in plans due to weather, illness or other unpredictable causes.

Most cancellation insurance involves a change of travel plans, but it’s also possible to insure private events against cancellation.

What Is Cancellation Insurance



Trip cancellation insurance covers the loss of your deposit or payment if you or a family member get sick, if you have a change in plans, if the company you paid goes bankrupt, or in the event of bad weather either canceling your trip or damaging your destination hotel.

Often included with trip cancellation insurance is medical coverage for illness or injuries sustained on the trip, or for emergency medical evacuation. Not all trip insurance covers all changes in plans, so make sure you check the details carefully before you buy.


Special Events

This type of insurance is also available on a limited basis for the cancellation or postponement of special events. It covers the loss of non-refundable deposits, damage to any special items involved with the event and vendor bankruptcy.



Wedding cancellation insurance covers the postponement or cancellation of a wedding in the event of extreme weather, unexpected illness, termination of the bride or groom’s leave by the military, or vendor bankruptcy.

It also covers the loss of deposits and damage to special wedding-related items such as the bride’s gown or the wedding cake.


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