TORONTO — Recent headlines about airline strikes and labour disputes have put renewed focus on the importance of travel insurance.

With Air Canada issuing a lockout notice yesterday after its flights attendants voted overwhelmingly in favour of a strike mandate, travel insurance experts are stressing the importance of purchasing travel insurance and reviewing policies, particularly since policies may have evolved since the pandemic.

Following the onset of COVID-19 five years ago, the travel insurance market in Canada has significantly expanded, with a 15% increase in policies purchased since 2020, according to HelloSafe’s latest travel insurance barometer. Yet only 46% of Canadian travellers currently have insurance for international trips, compared to 88% in Sweden and 78% in the United Kingdom. Average premiums in Canada stand at $210, ranking below the United States but above countries such as the U.K. and France.

Steven Harris, a licenced insurance broker and expert with LowestRates.ca, notes the gaps travellers face: “Travellers often rely on the travel protection offered by their credit cards, but there are often significant gaps and limitations in coverage that can present real challenges in the event of a flight cancellation, medical emergency or other travel disruptions. This is especially true for those with pre-existing health conditions or complex travel plans over multiple destinations.”

Harris emphasizes the critical nature of travel disruption coverage in strike scenarios: “A strike could easily derail your plans, leading to substantial expenses for rescheduled flights, extra hotel nights or missed connections. Thankfully, most travel insurance policies are affordable, especially when you consider the potential costs of disruptions.

TIMING IS KEY

Timing is everything, particularly when it comes to travel insurance amid airline strike talks and labour disputes. Blue Cross tells Travelweek that cancellation or interruption coverage may apply only if the insurance and trip were purchased before the strike became public knowledge. “The event – or the risk of it occurring – is considered publicly known from the moment it is announced in the media. Therefore, Trip Cancellation or Interruption coverage will not apply if a new travel insurance contract is purchased, or if a trip is paid for (fully or partially) on or after the date of the media announcement,” says the Blue Cross team, adding that its Cancel for Any Reason policy allows travellers to cancel their trip for reasons other than those covered by Trip Cancellation and Interruption and be eligible for a partial refund.

Dan Keon, Vice President of Marketing and Insights at Allianz Global Assistance Canada, echoes these points, telling Travelweek that travel insurance can provide coverage for travellers affected by an airline’s dispute or strike through benefits such as Trip Cancellation, Trip Interruption and Travel Delay, when this type of event is listed as a covered reason under these benefits. He cautions travellers to purchase policies before strike risks become publicly known, using the example of Aug. 1, 2025, for Air Canada.

“For certain Allianz Global Assistance Canada travel insurance policies purchased through one of our travel agency partners on or prior to the date of a known event – Aug. 1, 2025, in this instance when news of the strike vote became public knowledge – travellers may be eligible for reimbursement for prepaid and non-refundable covered travel expenses, such as hotel costs, that are not covered by the airline or other travel suppliers. Additionally, if travellers make alternate arrangements to reach their destination, they may be covered for additional transportation costs and non-refundable prepaid accommodation expenses due to delayed arrival,” says Keon.

“If a policy is purchased after the date on which the strike became a known event – Aug. 1, 2025, in this instance – benefits associated with the strike as a covered reason may not be covered,” he adds.

COVERAGE VARIES

Jennifer Waver, AVP and Head of Travel Distribution at Manulife, tells Travelweek that most travel insurance plans do not cover labour disputes or airline strikes unless a traveller has Cancel for Any Reason (CFAR) coverage, and even then reimbursement may not cover the full trip cost. “At Manulife, we go further. Our Premium Protection Plan is specifically designed to help protect travellers from any event that is unforeseen at the time the policy was purchased, including labour dispute and airline strikes. This plan includes both trip cancellation and trip interruption benefits, offering clients peace of mind and financial protection.”

Waver adds that with the Premium Protection Plan, if a labour dispute or strike causes a trip to be cancelled or interrupted, travellers may be eligible for reimbursement of their prepaid, unused portion of their insured travel arrangements that are non-refundable. “Beyond that, our plan also includes coverage for additional unplanned expenses such as hotels, meals, essential phone calls, internet usage, roaming and texting fees, and taxis – helping travellers manage the inconvenience of sudden changes,” she says.

Kathy Starko, President & CEO at TuGo, tells Travelweek that most insurance providers offer Trip Cancellation & Trip Interruption insurance as part of their comprehensive travel insurance plans. These policies typically cover non-refundable airfare, hotel bookings, pre-paid excursions or tours, and meals and accommodation during unexpected delays. Those that offer CFAR coverage provide greater flexibility, allowing travellers to cancel for reasons not typically covered under standard policies – including fear of travel due to a strike.

Starko says TuGo’s All-Inclusive Holiday Package is an ideal option for travellers during these times of uncertainty: “It includes Trip Cancellation & Trip Interruption in addition to Emergency Medical Insurance, offering coverage for unexpected labour disputes, as long as the policy was purchased before the risk became known. For those wanting coverage for maximum flexibility, optional Cancel for Any Reason coverage is also available for added protection.”

TRIP INTERRUPTION VS. TRIP CANCELLATION

All insurance providers will agree that reviewing an insurance policy is essential prior to travel. This would include understanding the difference between Trip Cancellation and Trip Interruption, both of which may be relevant in the case of an airline strike.

According to TuGo’s Starko, Trip Cancellation coverage applies before departure: “If you need to cancel your trip due to a covered reason such as a strike disrupting your flight, this coverage can reimburse you for non-refundable costs.”

Trip Interruption coverage, on the other hand, applies after a client’s trip has started, or as soon as they leave their driveway to start the trip. “This coverage is an economical way to provide coverage if your trip is cut short, delayed or disrupted. This can cover costs like rebooking a flight home, extra accommodation or missed portions of your trip,” adds Starko.

When it comes to an airline strike, if it’s announced before a client leaves on their trip and it impacts their flight, Trip Cancellation would apply. If the strike occurs while they’re travelling and impacts their flight, Trip Interruption would come into play.

This article originally appears in the Aug. 14 issue of Travelweek. To read the issue, click here.