What you need to know about travel insurance in the event of airline strikes and labour disputes

TORONTO — Recent headlines about airline strikes and labour disputes have put renewed focus on the importance of travel insurance.

With Air Canada issuing a lockout notice yesterday after its flights attendants voted overwhelmingly in favour of a strike mandate, travel insurance experts are stressing the importance of purchasing travel insurance and reviewing policies, particularly since policies may have evolved since the pandemic.

Following the onset of COVID-19 five years ago, the travel insurance market in Canada has significantly expanded, with a 15% increase in policies purchased since 2020, according to HelloSafe’s latest travel insurance barometer. Yet only 46% of Canadian travellers currently have insurance for international trips, compared to 88% in Sweden and 78% in the United Kingdom. Average premiums in Canada stand at $210, ranking below the United States but above countries such as the U.K. and France.

Steven Harris, a licenced insurance broker and expert with LowestRates.ca, notes the gaps travellers face: “Travellers often rely on the travel protection offered by their credit cards, but there are often significant gaps and limitations in coverage that can present real challenges in the event of a flight cancellation, medical emergency or other travel disruptions. This is especially true for those with pre-existing health conditions or complex travel plans over multiple destinations.”

Harris emphasizes the critical nature of travel disruption coverage in strike scenarios: “A strike could easily derail your plans, leading to substantial expenses for rescheduled flights, extra hotel nights or missed connections. Thankfully, most travel insurance policies are affordable, especially when you consider the potential costs of disruptions.

TIMING IS KEY

Timing is everything, particularly when it comes to travel insurance amid airline strike talks and labour disputes. Blue Cross tells Travelweek that cancellation or interruption coverage may apply only if the insurance and trip were purchased before the strike became public knowledge. “The event – or the risk of it occurring – is considered publicly known from the moment it is announced in the media. Therefore, Trip Cancellation or Interruption coverage will not apply if a new travel insurance contract is purchased, or if a trip is paid for (fully or partially) on or after the date of the media announcement,” says the Blue Cross team, adding that its Cancel for Any Reason policy allows travellers to cancel their trip for reasons other than those covered by Trip Cancellation and Interruption and be eligible for a partial refund.

Dan Keon, Vice President of Marketing and Insights at Allianz Global Assistance Canada, echoes these points, telling Travelweek that travel insurance can provide coverage for travellers affected by an airline’s dispute or strike through benefits such as Trip Cancellation, Trip Interruption and Travel Delay, when this type of event is listed as a covered reason under these benefits. He cautions travellers to purchase policies before strike risks become publicly known, using the example of Aug. 1, 2025, for Air Canada.

“For certain Allianz Global Assistance Canada travel insurance policies purchased through one of our travel agency partners on or prior to the date of a known event – Aug. 1, 2025, in this instance when news of the strike vote became public knowledge – travellers may be eligible for reimbursement for prepaid and non-refundable covered travel expenses, such as hotel costs, that are not covered by the airline or other travel suppliers. Additionally, if travellers make alternate arrangements to reach their destination, they may be covered for additional transportation costs and non-refundable prepaid accommodation expenses due to delayed arrival,” says Keon.

“If a policy is purchased after the date on which the strike became a known event – Aug. 1, 2025, in this instance – benefits associated with the strike as a covered reason may not be covered,” he adds.