How travel insurance protects you from NDAs and hidden travel scams
Planning your next trip? Protect yourself from the unexpected with a personalized travel insurance policy.
Taking a vacation is exciting. The beaches. The beverages. The rest and relaxation. Sounds wonderful until something unexpected happens. Having travel insurance protects you from financial risk when you’re far from home.
Dangers to be aware of when travelling abroad
Getting ill on vacation is the last thing anyone wants, and when it happens, you need help. Two families from Saskatchewan learned this the hard way while on vacation in Cancun, Mexico. A gastrointestinal illness struck the resort, causing severe vomiting and dehydration. When the illness was reported to resort staff, employees tried to pressure one family into signing a non-disclosure agreement (NDA) before sending a doctor, and didn’t want the other family to leave for the hospital before signing.
The NDA stated that guests could not hold the companies involved responsible and they were forbidden from talking about their experience publicly. Neither family signed. This use of NDAs or “silence agreements” is an unfortunate part of the competitive tourism industry as resorts try to minimize or cover up negative reviews.
Other dangers to be aware of when travelling include:
High pressure sales tactics
Have you ever had to fight through a line of salespeople who wouldn’t take no for an answer when you were leaving an airport? Tourist scams like this are a growing problem. Scammers use a false sense of urgency to pressure victims into making a quick decision when they are tired or distracted. To protect yourself, be skeptical of limited time offers that demand immediate deposits and always read the fine print before committing to anything.
Fake rental properties
Travel scams can also involve fake rental properties. Be wary of anything that appears too good to be true, such as rental accommodations at a price much lower than comparable properties. Scammers have been known to use stolen or fabricated photos to create fake properties and then pocket the payment, leaving travelers without a place to stay. Using a credit card to pay for your rental could offer you fraud protection because you have the option of issuing a chargeback to get a refund. However, getting your money back is hard if you’ve paid by cash or wire transfer. To limit your risk, always book through reputable sites like Airbnb, established travel companies, or well-known hotel booking websites.
How travel insurance will protect you
Travel insurance offers protection for a range of events that could disrupt your trip and cause financial hardship, such as hospitalization or an emergency trip home or replacing lost or stolen items.
Your provincial health insurance may have limited coverage outside of Canada, so getting additional insurance coverage is essential, especially since some hospitals may refuse treatment without proof of payment. Expect to pay about 4-10% of your trip cost (e.g., $200-$500 for a $5,000 trip) for a typical travel insurance policy.
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Travel insurance info you need to know before taking a trip
When researching your travel insurance options, be sure to read the policy carefully to ensure it covers everything you need and review any limitations or exclusions before purchasing. For example, does it cover you for an extended period of time or if you take part in any extreme sports? This is essential if you plan on scuba diving, zip-lining and other similar activities.
What does travel insurance cover?
The specifics will depend on the policy you select, but travel insurance coverage typically includes:
Trip cancellation
Reimbursement for non-refundable expenses if you need to cancel due to covered reasons such as illness, injury, or the death of a traveler or family member.
Trip interruption
Covers costs if your trip is cut short due to covered reasons.
Trip delay
Compensation for additional expenses (hotels, meals, etc.) if your trip is delayed due to weather, strikes, or mechanical issues.
Missed connection
Covers expenses if you miss a flight, cruise, or tour due to unforeseen events.
Medical coverage
- Emergency medical expenses: Covers doctor visits, hospitalization, and emergency treatment if you get sick or injured while traveling.
- Emergency medical evacuation & repatriation: Pays for transportation to the nearest appropriate medical facility or back home in extreme cases.
Baggage & personal items
Lost, stolen, or delayed baggage: Reimbursement if your bags are significantly delayed.
Other types of coverage
- Rental car coverage: Covers damage to rental vehicles due to accidents or theft (often an add-on).
- Adventure & sports coverage: Some policies cover activities such as skiing, scuba diving, and hiking.
- Cancel for any reason (CFAR): An optional upgrade that allows you to cancel your trip for reasons beyond standard coverage (usually reimburses up to 50-75%).
What does travel insurance not cover?
Travel insurance coverage has exclusions and limitations, which vary by policy. Here are some common things that aren’t covered by most travel insurance plans:
Known events
If you purchase insurance after a natural disaster, airline strike, or government travel warning has been issued, you won’t be covered.
Change of mind
Standard policies don’t cover cancellation if you simply decide not to go unless you have Cancel For Any Reason coverage.
Failure to meet visa/passport requirements
If you miss your trip due to an expired or incorrect visa/passport, insurance won’t reimburse you.
Not checking in on time
If you miss a flight because you didn’t make it to the airport on time, you won’t be covered.
Work obligations
Needing to cancel due to work-related reasons isn’t covered unless you have a Work Cancellation add-on.
Medical & health exclusions
- Pre-existing medical conditions: Many policies exclude pre-existing conditions unless you purchase a waiver.
- Routine or elective procedures: Regular checkups, elective surgeries, and non-emergency treatments aren’t covered.
- Mental health issues: Cancellations due to depression, anxiety, or other mental health diagnoses often aren’t covered (some premium policies may include coverage)
- Intoxication or drug use: Injuries or accidents that happen while you’re under the influence of alcohol or drugs typically aren’t covered.
- Risky activities: Some adventure sports (e.g., skydiving, bungee jumping) require a special add-on for coverage.
- Pandemic-related cancellations: Some policies don’t include cancellations due to pandemics or outbreaks unless specifically covered.
Baggage & personal item exclusions
- Unattended baggage: If your luggage is stolen while left unattended, you might not be reimbursed.
- High-value items: Many policies limit coverage for expensive electronics, jewelry, and designer goods (coverage is often capped at $500–$1,000).
- Delayed bags under the time limit: If your baggage delay is under the policy's minimum (often 12–24 hours), it won’t be covered.
Other exclusions
- War, civil unrest, and government restrictions: Many policies exclude coverage for war-related events, protests, or travel bans.
- Self-inflicted injuries: Injuries due to self-harm or suicide attempts aren’t covered.
- Extreme weather without official warnings: If you cancel a trip because you’re worried about potential bad weather but there’s no official warning, you won’t be reimbursed.
The bottom line
Traveling should be an exciting and worry-free time, but challenges can happen when you least expect them. Having the right travel insurance in place before you leave can protect you against medical emergencies, trip disruptions, and other unforeseen mishaps. By understanding what travel insurance covers—and what it doesn’t—you can relax knowing you’re protected.
Compare travel insurance quotes online today and enjoy your trip with peace of mind.