Travel insurance is becoming more and more popular among U.S. travelers. The global market is expected to grow 8.5% by 2022, according to Allied Market Research. Travel agents can expect to see more and more inquiries about trip insurance, how it works, and the travel insurance benefits provided.
At TravelSafe, we get a lot of questions from agents regarding the rules of selling travel insurance. Whether they became an agent last week, or decades ago, your agency should follow these general guidelines when recommending travel insurance to your clients.
Check out a case study from a TravelSafe agent by clicking here.
1. Timing is everything
There is nothing more important than timing when it comes to any type of insurance. In fact, the when is often more important than the what. Timing allows for us to offer incentives like Pre-Existing Conditions Waiver coverage, Bankruptcy Default, and Cancel For Any Reason (CFAR) benefits to clients who purchase coverage within 21 days of their initial deposit.
If your reading, watching or hearing about something it’s probably too late to get coverage!
I like to quote the popular insurance saying, “It's too late to buy flood insurance when the flood waters are rising!" - because the same applies to travel insurance. When the storm has already been named, it is too late to get coverage. This holds true for terrorist attacks, hurricanes, winter storms, and any major event that would normally be covered.
Many travel professionals remember the Icelandic volcano that shut Europe down for weeks. This is a prime example as to why it is important to get your client covered as early as possible. There was no way for anyone to predict an event like that, and only clients that already had policies in place before the volcano started erupting were protected.
Check out our guide to time-sensitive provisions here.
2. Accepting only the unknown
Is there still a question mark when it comes to your question, or is it an exclamation point?
What I mean is - there must still be an unknown element to your client’s situation. If there is not, then we can’t insure it because the issue has already been resolved.
No one would try to get auto coverage after they have an accident and expect that accident to have coverage.
Well, the same holds true for travel insurance. If your client already knows they need to cancel, then it’s probably too late to get coverage. Since TravelSafe doesn’t apply pre-existing conditions to covered family members we often get asked, “Will my client be covered if there is a serious illness in the family or worse yet - a death?"
The short answer is - yes, but sometimes we find out the family member is already ill or in hospice. This means we need to make sure they understand that there must be a documented worsening of the condition in order for them to be covered.
3. Documentation is never personal
One detail clients often miss when going over their coverage is the importance of documentation. It can cause a great deal of trouble, and it shouldn't.
A request for 3rd party verification is not a question of the agent or customer's integrity. It is simply a condition of coverage.
The circumstances leading to a claim must be able to be verified by another source. This is why I often tell agents a claim is a story, a non-fiction one, but still a story. When all the facts check out, the process is quick and painless. It is when documentation is nonexistent, or doesn't match the story, that we will see complications.
4. No insurance covers the fear of something happening
There is no better example than the infamous Zika virus. We absolutely cover Zika virus if your client contracts the virus during their trip, or even prior to their trip. However, we can only cover cancellation for fear of contracting the Zika virus if they have a plan with Cancel for Any Reason.
No one is eligible for trip cancellation if they are simply afraid of what may happen.
5. Exclusions always apply
The most important part of any insurance policy is not what it does cover, but what it doesn't. Exclusions are the big thing that insurers refuse to cover because they don’t feel that the premium they are collecting is sufficient to the risk. Some standard exclusions are war, crimes, and the most infamous of, all acts of god.
I always tell agents that the most important part of a certificate is the exclusions. For example, all travel insurance policies in the market today, exclude pre-existing conditions. The only way to get them covered is to get a waiver. This is why it is important you are familiar with the exclusions of the product you are selling, as it could be the reason that cheaper policy your client wants isn’t right for them.
Being that most travel agents have a variety of clients, it is important to shop around for a company that has fewer exclusions and is consistent throughout the entire product line. A company who has hidden exclusions in their policy and words, such as "Act of God" is not a plan we would recommend to those who are not insurance experts. And let's face it, most people aren't.
Take my advice and follow these tips, and you will feel comfortable offering travel insurance to your clients. You will provide them with an unforgettable experience protected by a great product.
Interested in selling TravelSafe? Request a demo to see how our travel insurance works.
