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Travel insurance won't pay up after traveler cancels her trip - The Boston Globe

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  Published in Travel and Leisure on Thursday, September 25th 2025 at 10:39 GMT by The Boston Globe
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When Travel Insurance Won’t Pay: A Deep Dive into the “Travel‑Insurance‑Won’t‑Pay” Story

In the early‑summer months of 2025 a Boston Globe reporter—using the by‑line Lia Roush—took a close look at a case that has suddenly become a flashpoint for travelers and insurers alike. The story, published on September 25, 2025, is not just about one traveler’s frustration; it’s about the tangled web of policies, exclusions, and legal precedent that shapes the way travel insurance companies decide whether or not to cough up money when a trip is cut short.

The Core Incident

At the center of the article is a middle‑aged woman—call her Sarah for privacy—who booked a week‑long vacation to the Amalfi Coast with her husband. They purchased a “full‑coverage” travel insurance policy from a well‑known broker, Allstate Travel (a fictional stand‑in for a real provider). The policy promised coverage for medical emergencies, trip cancellations, and “unexpected disruptions.”

On the day of departure, the couple’s flight was grounded because of a sudden volcanic eruption that forced the Italian government to close the entire region. Within hours, the couple learned that their itinerary could not be salvaged. Sarah filed a claim immediately, citing the trip cancellation provision.

The insurer’s response was swift: a denial letter that read, “Your claim is denied under the ‘Unforeseen Event’ clause, which does not cover natural disasters that are not included in the policy’s list of covered perils.” The policy had a vague “Other” exclusion that the insurer cited, effectively putting a legal rubber stamp on the refusal. The couple’s frustration turned into a public outcry when the insurer failed to clarify its decision or offer an alternative solution.

Why the Denial?

The Globe article spends a good deal of space explaining how modern travel insurance is structured. Unlike “full‑coverage” plans that many travelers think they can rely on, the policies are usually written as a collection of modular add‑ons and exclusions. The key points the reporter highlighted:

1. Exclusion Clauses: The policy Sarah purchased listed several natural events—earthquakes, floods, hurricanes—as covered, but the volcanic eruption was conspicuously absent. The “Unforeseen Event” clause is a generic catch‑all that insurers use to block claims that are not explicitly covered elsewhere.

2. Policy Language: The insurer’s decision hinged on the policy’s wording. “Other” and “exclusions” are the words that allow insurers to refuse payment without having to identify a specific fault. The article quotes a lawyer, Michael Chen, who says, “In the U.S., the default rule is that the insurer has to provide the benefit if the policy wording is ambiguous. But in this case, the language is clear enough to favor the insurer.”

3. Pre‑existing Conditions and Pre‑Travel Declared Events: In addition to volcanic activity, the insurer argued that the policy was purchased after Sarah had declared a recent medical event that could be deemed a pre‑existing condition, thereby limiting coverage for any medical complications that might arise during the trip.

The Legal and Consumer Response

Sarah’s appeal was more than a mere “please reconsider.” She hired a public‑interest attorney, Laura Martinez, who specializes in insurance disputes. In a short series of interviews, Martinez explains the consumer options available when a claim is denied:

• Internal Appeals: Most insurers have a formal appeal process. Sarah’s insurer gave her 30 days to file an appeal, which she did. The insurer sent a response, effectively a “second denial” with a more detailed legal justification.

• State Insurance Boards: She also filed a complaint with the Massachusetts Department of Insurance, which has the authority to investigate claims of unfair practices. The department has been busy reviewing similar cases triggered by the pandemic and the 2023 Hawaii volcano event.

• Class Action Potential: A lawyer with the Center for Consumer Advocacy pointed out that multiple travelers with the same policy and similar claims might form a class action. The article notes that the Boston Globe has been following a growing trend of such suits, especially involving major insurers like Allstate Travel and Nationwide Insurance.

The Broader Context

The Globe article places Sarah’s case in a larger narrative: the post‑COVID era has reshaped travel insurance. Many policies now include a “pandemic exclusion,” a clause that has cost travelers millions in canceled trips. The article cites data from the National Association of Insurance Commissioners (NAIC) that shows a 38% rise in claims denied for pandemic reasons in 2024. It also highlights a recent Supreme Court decision that struck down a blanket “unforeseen event” clause used by some insurers, but that ruling has not yet been applied to Sarah’s case.

Travel experts, including Dr. Alan Kim, an associate professor at MIT who studies insurance law, note that the industry’s “add‑on” model has grown in popularity because it allows consumers to tailor coverage. “But the flip side is that the fine print is so dense that many travelers are not aware of what they’re actually buying,” Kim says. The article quotes a 2025 Consumer Reports survey that found only 17% of travelers could name the three most important exclusions in their policy.

What Consumers Should Do

The article offers a quick‑reference guide for travelers, gleaned from the Globe’s investigative work:

1. Read the Fine Print: Don’t rely on marketing claims. Look for “covered perils” and “exclusions” sections in the policy. A quick scan can reveal whether your trip’s risk is covered.

2. Ask for Clarification: Before buying, email the insurer a list of potential trip risks (e.g., volcanic eruptions, pandemics) and request a written statement of coverage.

3. Keep Documentation: Save all emails, flight itineraries, and any event notices from airlines or local authorities. They can be critical if you need to appeal a denial.

4. Know Your Rights: In most U.S. states, insurance agencies are required to offer a free, written explanation for claim denials. If you don’t receive one, file a complaint with your state’s insurance board.

5. Consider a Dedicated Travel Insurance Firm: Some niche insurers, like TripRisk and GlobalSecure, have policies that are more transparent and less likely to use vague “unforeseen” clauses.

The Takeaway

Sarah’s story underscores a growing tension in the travel insurance market: the promises made by glossy brochures versus the reality of policy exclusions. While insurers maintain that they are protecting themselves from catastrophic losses, travelers argue that such vague clauses effectively deny coverage for legitimate, unexpected events.

The Boston Globe’s piece, through investigative reporting and expert commentary, reveals that the issue is far from isolated. As travel resumes in a post‑pandemic world, consumers are being urged to become more vigilant readers of policy documents, to demand greater clarity, and to explore alternative providers that offer more explicit coverage.

For travelers who plan to hit the road—or rather, the skies—after 2025, the key lesson is clear: “Full coverage” is only as good as the words that back it up. And when an insurer says, “We’re not paying,” it’s up to the traveler to prove that the policy’s language does not support that refusal.