Your suitcase is by the door. Your dog sitter is confirmed (and your Labrador is already pouting). You’ve even gone online to check in early for your flight. And hey, no wonder you’re raring to go—you’ve been looking forward to this tropical cruise for months! But just as you’re deciding whether or not to pack a second bathing suit, your travel companion calls with some unbelievable news: your cruise line just announced they’ve ceased operations, effective immediately.

Okay, it’s not the news you wanted to hear (your Labrador, on the other hand, is absolutely thrilled about having you around for on-demand belly rubs). But here’s a silver lining: if you have an Allianz Travel Insurance plan that includes supplier default as a covered reason for trip cancellation and trip interruption, you can recoup your qualifying travel investments.

If that sounds complicated, don’t worry—we’ll help you break it down.

What is supplier default?

First things first: let’s define what supplier default actually means. This is when a covered travel supplier ceases all operations due to its financial condition, with or without filing for bankruptcy.

Now this is important: bankruptcy doesn’t necessarily equal supplier default—sometimes companies will file for bankruptcy but still continue to provide services. Supplier default is when services stop completely, and there’s no foreseeable financial recovery for the company.

So that’s the general definition. Now let’s dive deeper into the specifics:

The company in question has to be your covered travel supplier—in other words, they were directly providing a travel service for you. So that might include things like a tour operator, an airline, or a cruise line. (A travel agency, on the other hand, more than likely wouldn’t qualify; that’s because they typically sell services on behalf of a travel supplier, rather than supplying services firsthand.)

Now, notice we also said the company in question has to be a covered travel supplier. That’s because of another condition: in order for losses to be covered, your travel supplier must have been included on our Covered Suppliers List on your plan’s effective date. We cover many of the common travel suppliers, but be sure to check the list to see what companies are on it—just keep in mind that the list is subject to change.

What can supplier default coverage do for me?

If your plan includes supplier default coverage, you can get reimbursed for non-refundable payments and deposits you made before your trip was canceled. So flash back to your travel companion calling with the bad news that your cruise line is suddenly kaput and no longer offering services: sure, you’re bummed about losing out on a sun-filled vacay, but you’re majorly relieved that you don’t have to lose your entire trip investment.

Here’s another scenario: let’s say your travel supplier shuts down while you’re on your trip. If supplier default is included as a covered reason for trip interruption, you can get reimbursed for the unused, non-refundable portion of your trip. Your trip interruption benefits can also reimburse you for reasonable transportation expenses you incur to continue your trip or to return home.^†

^†Plan limits apply—be sure to check your plan documents to see how you may be covered.

How do I know if I have supplier default coverage?

Several of our plans include supplier default as a covered reason, including:

• AllTrips Prime
• AllTrips Executive
• AllTrips Premier

That said, you should always be sure to review your plan’s terms, conditions, and exclusions to make sure that you know what’s covered and what’s not. (Don’t be intimidated! Our handy guide to understanding your travel insurance plan details is a great place to start.)

What conditions do I have to meet in order to be eligible for supplier default coverage?

Smart question—because even if your plan includes supplier default coverage, you do have to meet a few conditions in order to be eligible for reimbursement. Here’s what they are:

1. You must have purchased your plan within 14 days of the date of the first trip payment or deposit.
2. The cessation of operations occurs more than seven days after your plan’s Coverage Effective Date.
3. Your plan was not purchased directly through the tour operator, airline, or cruise line ceasing operations, or an affiliate of that entity.
4. The tour operator, airline, or cruise line is included in our list of covered suppliers on your plan’s Coverage Effective Date.

And again, you always want to make sure to review your plan to make sure you fully understand the conditions. (Yes, we’ve said it three times now—it’s really that important!)

Okay, I meet the conditions—now how do I file a claim?

Let’s go over the basics! While you can file a claim by phone, fax, or mail, most people find it simplest to file online, where you can also check the status of your claim at any time.

Quick tip: before you submit anything, see what kind of documentation you may need to gather for your claim. In this case, you may include things like your trip itinerary (which should show traveler information, trip details, a breakdown of costs, and payment information); and receipts for any non-refundable deposits you’ve paid. Or in the case of trip interruption, you’ll want to include receipts for reasonable expenses to continue your trip or to return home. Check out our Required Documentation Checklist for more information about what you’ll need to include.

What do I do if I receive both a refund from my travel supplier and from a claim related to my Allianz Travel Insurance plan?

If you receive additional reimbursement for your claim, please contact our Recovery Department and reference your claim number in your correspondence. (Unless prohibited by law, you may be required to return excess funds if they ecxeed your total amount of loss. We and your plan's underwriter(s) each reserve our respective rights, remedies, and defenses under this plan and applicable law.)

It’s not ideal when your travel supplier suddenly goes out of business, but it can be a lot easier to deal when you’ve got an Allianz Travel Insurance plan that can help. Not insured yet? Find affordable protection for your next trip.

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