It's now too late to buy travel insurance if Air Canada cancels flights, but this is what to know for the future

An Air Canada Plane is seen at Pearson Airport in Toronto, July 24, 2024. THE CANADIAN PRESS/Christopher Katsarov

As many as 110,000 Air Canada passengers could be affected daily if the airline doesn't reach a deal with its pilots' union by Sunday. However, it's too late for flyers to purchase coverage for the flights that could be impacted by a work stoppage.

Omar Kaywan, co-founder of Goose Insurance in Vancouver, B.C., spoke to CTV News Edmonton to explain why, as well as what airline customers should consider doing in the future.

This interview has been edited for length and clarity.

CTV: What do you think is the role of insurance in this kind of situation?

OK: The role of insurance in this kind of situation is really to provide consumers who didn't know that this was happening, or this event was happening, to provide them protection, particularly when it comes to their trip being interrupted or flights being cancelled or delayed.

Insurance typically covers you for unforeseen events.… Right up until Sept. 9, where the announcement was made about the 72-hour warning that was given, as well as the potential strike happening on the 15th, insurance would have covered consumers. Like, if somebody had purchased cancellation or trip interruption (insurance), they would have been covered should their flights (be) impacted or their trip was impacted.

But now that this is a known event, unfortunately, insurance is not going to be able to help consumers.

CTV: So this is a lesson about what to do in the future should something similar happen again?

OK: Exactly. So, for consumers who are worried about these sort of situation: (buy insurance) as soon as they book their flights, as soon as they know their trip.

Unfortunately, we have been sort of living these cycles of flight crews and pilot strikes for a few years now, and they seem to be happening more frequently than we would like. So as we think about our future travel plans, it's important to look at insurance.

I know it may sound a little bit counterintuitive for a lot of your listeners, particularly because we're living some tough times economically and financially, but you're really protecting your investment that you've made on your flights and your vacation and your trips.

CTV: And the date that's key to do this by is the date that notice is given of a possible work stoppage?

OK: Exactly.

Every single insurance company is different, so it's really important for people to think about this when they are purchasing. But as soon as the date is known, it's considered to be a known event and insurance will not cover it – because cancellation or trip interruption is really for unforeseen events where your flight is delayed or cancelled.

Canada, particularly, has gone ahead and provided and notified all its travellers who are going to be travelling over the next few days. They have also provided solutions for changing your flights at no cost, in terms of more change fees and so on and so forth; they're waving that. So it's a known event.

So for somebody to go ahead and buy trip cancellation, trip interruption, today, if they're flying this weekend – on the 16th, let's just say – they're not going to be covered because it's a known event. But for somebody who had purchased it – let's just say Aug. 30, two, three weeks in advance of this happening – and it was still unknown whether they were going to go on strike or not … they would have been covered (if a work stoppage happens).

CTV: Why do customers need insurance if an airline is supposed to provide rebookings or refunds, etc.?

OK: The airline is not looking at your accommodation, concert tickets, cruises, so on and so forth.

Trip cancellation (and) trip interruption is not only for flights.

Trip cancellation and trip interruption, which are usually purchased together, cover you should your trip need to be cancelled for unforeseen events, such as flight cancellations, even flight delays when it's weather related, for example, snowstorms and so on and so forth, flight crew strikes that are unforeseen, things like that. But it also covers you for incidents, for example, where there's a death in the family, or if you are unemployed.

Trip interruption is if your trip is interrupted because of a particular event. Let's just say that you are in Mexico and you fall on your trip and you break your leg, and you can't continue with your trip and you need to come home. Or if there's a weather-related event that happens and your trip can't continue.

And then there's baggage. Baggage typically covers you for lost, stolen or delayed luggage.

Trip cancellation is probably the most expensive because it really depends (on the value of the trip).... If you're covering, you know, a $2,000 airline ticket or $3,000 airline hotel cost, it's probably not going to be that much. You're looking at about $150 to $200, perhaps.

Trip cancellation covers you right up to your departure date, and then trip interruption covers you when you're actually on your trip and your trip is interrupted.… Typically, it's a per-day premium that you pay depending on the number of days that you're gone. And, you know, anywhere between $30 to $100 is kind of an average range of what we see with Goose Insurance.

CTV: Did you see an increase in purchasing of travel insurance in the weeks leading up to today?

OK: We did. We actually had a lot of inquiries for customers who, you know, wanted to purchase and their number one question – which was good on them – was: If I was to purchase this now, will I be covered? And that's really important for anybody who's going to be travelling in the next two weeks – not necessarily just this weekend, because we still don't know what's going to happen. Before you buy this coverage, call the insurance company and specifically ask if you're going to be covered.

This has been because of what has happened last year with WestJet and Swoop, particularly, when we had the pilot strike, and this year, obviously, with Air Canada.

With files from CTVNews.ca and The Canadian Press