Coverage explainer
What if my expedition operator goes out of business?
Travel insurance can reimburse your non-refundable trip cost if your tour operator, cruise line or airline stops operating because it is insolvent, but only when three conditions are met. You buy the policy inside the plan's purchase window, the failure happens more than 14 days after your cancellation cover starts, and the company that fails is not the agent or reseller you paid. Some plans also exclude the operator you paid directly. A failure that was already known when you bought the policy is not covered.
Reviewed by Al Ste-Marie, Founder, Expedition Insure. Last updated November 4, 2026.
The financial default clause, plan by plan
Each plan words the clause differently. These are the conditions in the policy wording we hold for each plan.
| Plan | Whose failure is covered | Buy within | Waiting period | Not covered |
|---|---|---|---|---|
| RoamRight Pro, ProPlus and CancelFlex | An airline, cruise line or tour operator whose bankruptcy or default causes a complete cessation of travel services. | The time sensitive period: 14 days from your first trip payment on Pro, 21 days on ProPlus and CancelFlex. | The default must happen more than 14 days after your trip cancellation cover starts. | The default of an organization or firm that sold you travel arrangements supplied by others. For an airline, only the change fee is paid when other transport is available. |
| Generali Premium | Common carrier delays or cancellations caused by financial insolvency. Insolvency means a licensed travel supplier totally stops or suspends operations. | Before, or within 24 hours of, your final trip payment. | Insolvency within 14 days after your trip cancellation cover starts is excluded. | Insolvency of the person or firm you bought or paid for the trip from, insolvency before your cover starts, and losses caused by fraud or negligent misrepresentation by the supplier. |
Source: each plan's policy wording, checked in November 2026. Terms vary by plan and state of residence, and your certificate states the terms that apply to you.
What counts as a default
The plans pay for a total stop, not a bad trip. RoamRight defines bankruptcy or default as the total cessation of operations due to financial insolvency, with or without the filing of a bankruptcy. An operator that is still trading but changes your itinerary, downgrades your cabin or refuses a refund is not in default.
Those other failures are excluded. RoamRight excludes a travel supplier's failure to provide the arrangements, or to give you a refund, for reasons other than bankruptcy or default.
Why timing decides the claim
Two clocks start when you book, and both are set by the policy wording.
- The buy-by window. On RoamRight plans the default cover applies only if your payment for the policy arrives within the time sensitive period: 14 days from your first trip payment on Pro, 21 days on ProPlus and CancelFlex.
- The 14-day wait. A default in the first 14 days after your cancellation cover starts is not covered. On RoamRight plans that cover starts the day after the insurer receives your premium.
- The cap. Cancellation is reimbursed up to the trip cost you insure, so insure the full non-refundable amount.
Buy when you pay the deposit. RoamRight excludes any loss or event that was known, foreseeable or expected when you bought the policy, so cover bought after news of an operator's trouble does not help.
Cancel for any reason does not replace it
On RoamRight CancelFlex, the cancel for any reason benefit does not cover a travel supplier that fails to provide the trip because it stopped operating, for any reason. Supplier default is handled by the financial default clause above. Read how cancel for any reason works before you rely on it for this risk.
Frequently asked questions
Does travel insurance cover a tour operator going bankrupt?
What if the travel agent I paid goes out of business?
How soon do I need to buy?
Is there a waiting period?
What if my airline goes bust?
Does cancel for any reason cover an operator going out of business?
Can I buy cover after I hear my operator is in trouble?
Related coverage
Insure the deposit when you pay it
The buy-by window starts with your first trip payment. Get a quote while it is open.
Get a quoteThis page summarises policy wording for general information. It is not legal or financial advice. Coverage, limits and eligibility are governed by the policy you buy, terms vary by plan and state of residence, and your certificate states the terms that apply to you.