But a surge in demand for Covid-19 coverage also means insurers could be on the hook for big payouts should another wave of infections lead to large numbers of cancellations or tourists getting sick.
Covid-19 insurance benefits typically cover treatment up to $100,000, and could include coronavirus testing costs and services like evacuation or local burial or cremation. These benefits, introduced by insurers in mid-2020, are sold either as add-ons or as separate policies with coverage for illness or quarantine.
A travel insurance plan that includes trip protection, medical expense coverage for Covid-19 and protection for baggage and personal effects typically costs 4% to 8% of the dollar value of the trip, Murchland said. For example in June, Seven Corners introduced an optional medical travel plan with coverage for coronavirus expenses, Murchland said. By year's end, the product with coronavirus coverage generated about 80% of total medical travel plan sales.
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