New York State to Allow Sale of ‘Cancel for Any Risk’ Travel Insurance

By Paul Riegler on 8 March 2020
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An empty Terminal C at LaGuardia Airport last week

The New York State Department of Financial Services gave the green light for travel agents and travel insurers in the state to offer so-called “cancel for any risk” travel insurance, effective immediately.

The news was announced in a guidance letter to travel agents and travel insurers from the department.

Known as CFAR, cancel for any risk insurance is typically sold as an add-on to standard travel insurance coverage and it reimburses a traveler for up to 75% of his total trip costs if he has to cancel a trip for any reason that is not listed in a standard policy.  Not all travel insurance packages offer CFAR.

Almost no travel insurance packages will cover trip cancellations or interruptions due to an epidemic, pandemic, or similar public health event.

The change was made to allow residents of the state to feel more comfortable about booking travel while the threat of the coronavirus outreak continues to increase daily.

In general, a traveler must insure 100% of all pre-paid travel arrangements that are subject to cancellation penalties or restrictions by the travel supplier.

Six global and national insurance companies have agreed to offer CFAR coverage to travelers, including Allianz, Nationwide, Starr Indemnity, Berkshire, Crum & Forster, and Zurich.

(Photo: Accura Media Group)

Accura News

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