Government shutdowns. Record-breaking winter storms. Military conflicts and airspace closures. If 2026 has taught us anything, it’s that travel disruptions are no longer the exception—they’re a recurring reality that travel advisors and their clients need to plan for.
With spring and summer bookings ramping up, travel insurance comparison platform Squaremouth is raising a flag that advisors will want to pass along to their clients: airline passenger rights alone are not enough.
“Travelers may assume they’re protected simply because they bought a refundable flight,” said Chrissy Valdez, senior director of operations at Squaremouth. “However, passenger rights are narrower than most people think. Understanding your legal rights and travel insurance options is critical for avoiding unexpected financial losses, especially during peak travel periods when costs are higher, and disruptions can be more common.”
What Airlines Are—and Aren’t—Required to Do
The U.S. Department of Transportation does require airlines to issue refunds for significantly delayed, canceled, rerouted, or materially changed flights—but only if the traveler hasn’t already accepted a voucher, travel credit, or alternative flight. Clients who grab the first rebook offer an airline presents may be unknowingly waiving their right to a cash refund.
More importantly, airlines are under no obligation to cover the costs that pile up around a disruption—hotel nights, meals, ground transportation, or non-refundable trip components like tours, cruises, and resort reservations. That’s where the real financial exposure lives, and where travel insurance earns its value.
The Coverage Gaps Travel Insurance Was Built to Fill
For advisors selling comprehensive travel protection, the Squaremouth breakdown reinforces several key selling points:
Trip Cancellation and Trip Interruption coverage picks up the non-refundable costs that airlines have no responsibility for—prepaid hotels, tours, and cruise fares that simply disappear if a trip falls apart. Trip Delay coverage addresses the out-of-pocket costs of being stranded, especially during weather events the airline will call “uncontrollable.” Missed Connection coverage helps clients who lose portions of a cruise or tour itinerary because of a delayed inbound flight.
For clients who want maximum flexibility, Cancel For Any Reason (CFAR) and Interruption For Any Reason (IFAR) upgrades offer partial reimbursement when the reason for canceling doesn’t fit standard policy definitions. Both add-ons are time-sensitive—they must typically be purchased within 14 to 21 days of the initial trip deposit—making it especially important to have the travel insurance conversation early in the booking process.
The Bottom Line for Advisors
The current travel environment makes this an unusually strong moment to reinforce the value of comprehensive coverage to clients. International trips, high-cost bookings, and itineraries with multiple components carry the most exposure, and clients who’ve experienced disruptions firsthand this year are likely more receptive than ever.
Advisors can compare available travel insurance plans at squaremouth.com.
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