Why travel insurance may not help you if there’s a WestJet strike

WestJet travellers may be out of luck when it comes to financial protection against a grounded flight, as travel experts say insurance purchased in the days since a potential strike was announced is unlikely to reimburse customers for travel woes due to the labour dispute.

If travellers had bought insurance before Wednesday when the Canadian Union of Public Employees (CUPE), the union representing flight attendants on WestJet’s main airline, announced members had voted 99.4 per cent in favour of striking, they might have been covered.

But since CUPE Local 8125 announced that its members could strike as soon as the upcoming August long weekend if no deal is reached with WestJet, insurance companies can now treat a strike or lockout starting on Aug. 2 as a “known event” and could potentially refuse coverage.

According to a memo distributed by insurance provider Manulife to travel professionals, the benefits “related to this potential strike would not apply.” Travel insurance salesman Martin Firestone says this type of move isn’t a surprise.

“That’s insurance for you. Bottom line is, there’s no longer a risk. It’s, in fact, a reality,” said Firestone, who owns travel insurance company Travel Secure in Toronto.

Firestone notes that travel insurance purchased now will still cover events such as illness or death, depending on your policy.

“What won’t be covered is that you couldn’t get there because WestJet’s flight attendants went on strike,” he said.

Why travel insurance should go beyond airfare

In the event of a flight cancellation due to the strike, typically airlines would be obligated to rebook the flight — in some cases, this would include using an alternate carrier — or offer a full refund.

But Firestone points out insurance needs to go beyond just the price someone paid for their flight.

“It’s never about the airfare, in my opinion,” he said.

As an example, he described a hypothetical traveller who has spent $1,000 on a flight to get to a $6,500 cruise that departs at a specific time.

Trip interruption insurance could protect both the $1,000 for the flight and the $6,500 for the missed cruise, whereas without insurance the cruise costs may be lost.

“We need cancellation and interruption insurance … that’s not what you get when you buy an airline ticket and take the insurance that comes with it,” he said, referencing the travel insurance that’s sometimes offered when booking a flight.

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