With WestJet flight attendants poised to walk off the job over the August long weekend, industry experts say now is the time for travel advisors to talk to clients about what their travel insurance covers and, more importantly, what it doesn’t.
Insurers designate certain events—such as a looming strike or lockout—as known once they become publicly foreseeable. Any disruption tied to that event, occurring after that designation, falls outside standard policy coverage.
In an email to Open Jaw, Manulife said it designated the possibility of WestJet labour action as a known event in relation to trip cancellation and interruption insurance on 17JUL.
That means that travel insurance coverage may not apply to claims related to this event under policies purchased on or after that date.
"Travel insurance is designed to help protect customers against unexpected events that may impact their travel plans. When a potential disruption becomes publicly known, insurers may designate it as a ‘known event,’ which can affect coverage eligibility under certain policies purchased after that date," a spokesperson for the insurer said.
"Customers whose travel plans may be affected are encouraged to contact their airline or travel provider as early as possible to discuss available options and review their policy coverage," they added.
A spokesperson for CAA Insurance told Open Jaw that, typically speaking, only "cancel for any reason" insurance would cover a situation like an airline strike.
"Outside of that, travel insurance policies typically don’t cover a known strike," they said.
"WestJet bears responsibility to support passengers through alternative flight options, refunds, and in some cases, reimbursement for out-of-pocket expenses."
Whether travellers who purchased insurance before possible labour action became a known event depends on the level of coverage purchased and the specific terms of their policy.
This is not the first time insurers or advisors have faced this issue. Just last summer, the industry was left grappling with labour action by Air Canada flight attendants who walked off the job for three days in August.
In the lead-up to that strike, many insurance providers sent notices to customers and advisors, outlining what to expect from their policies. That strike was also declared a known event by providers a number of weeks before the job action occurred.
Roughly 97% of WestJet Mainline flight attendants, represented by CUPE Local 8125, voted in favour of strike action last week, giving the union's bargaining committee a mandate for job action if a new contract isn’t reached by 02AUG.
However, the vote doesn’t guarantee a walkout; as previously reported by Open Jaw, union leadership has repeatedly stressed that a strong result is meant to strengthen its hand at the table, not automatically trigger labour action.
