Air Canada’s three-day flight attendant strike may be over, but its ripple effects are still being felt. The work stoppage grounded hundreds of flights, stranded tens of thousands of travellers, and set off a wave of customer inquiries about what protections their travel insurance policies actually provide.
According to Dan Keon (pictured), vice president of marketing and insights at Allianz Global Assistance Canada, the disruption underscores not just the operational fragility of air travel, but also the ongoing need to tighten clarity and communication in the insurance sector.
“Airline strikes are nothing new for the industry,” he said. “This most recent strike highlights just how disruptive they can be. Given that Canada has very strong air passenger protection regulations, the responsibility for taking care of affected passengers ultimately falls with the airline. That said, travel insurance providers will no doubt assess the frequency and impact of such strikes more closely, and adjust their underwriting strategies accordingly to ensure that policies remain relevant and provide adequate protection for travelers.”
But Keon stressed that the lessons go beyond underwriting. Surges in customer calls during high-profile disruptions often expose how policy language can be misinterpreted or overlooked altogether.
“It often comes down to that initial conversation between the broker and the customer,” he said. “Unfortunately, customers will sometimes assume that travel insurance provides protection for all scenarios. Reinforcing the fact that there are specific covered events, and specific types of expenses covered, can make all the difference in setting expectations up front.”
In strike situations, he added, one of the most common misconceptions is how refunds and claims interact. “If the airline is going to refund you, that is your first path for reimbursement,” Keon said. “If you have non-refundable expenses, that’s where your travel insurance comes in. That kind of education helps customers understand the sequence and makes the customers better prepared if an event like this comes to be.”
For travellers, the key is not simply knowing they have travel insurance, but having a clear understanding of what it actually covers in practice. Keon pointed out that strike-related claims often hinge on whether a policy includes benefits for trip cancellation, interruption, or delay, and whether strikes and labour disputes are specifically listed as covered reasons. Just as important, he said, is understanding the distinction between refundable and non-refundable expenses. If the airline provides a refund, that is always the first step for reimbursement. Where travel insurance steps in is when travellers have already paid for non-refundable elements of their trip – such as hotels, excursions, or connecting flights booked separately – that are affected by the disruption.
“In this instance, customers might have flights within Canada as the bulk of their booking, but also other expenses tied to their trip,” Keon said. “If those aren’t refundable and it’s a covered reason under the policy, then they would be eligible for benefits. Again, it comes back to education and helping people walk through their coverage so they know how it works. That clarity goes a long way in making sure customers are prepared when events like this occur.”
Another nuance, Keon explained, is how coverage can vary depending on whether a strike is merely threatened or actively underway. Some policies only trigger benefits once a strike is in effect, while others may also extend protection if there is a credible threat of labour action. The challenge for both insurers and policyholders lies in determining when an event officially becomes “known.”
“Insurers will often use the date when a strike or threat of a strike becomes publicly known – usually through mass media reports – as the cutoff point,” Keon said. “That date determines whether the event is considered foreseeable, and therefore whether coverage applies based on when you purchased your policy.”
In practical terms, that means travellers who wait until after a strike is announced to purchase insurance are unlikely to be covered for related disruptions. Keon compared it to buying home insurance after a fire has already started. “The key is to secure your coverage at the time you book your trip, not after a potential issue has been flagged,” he said. “That way, when unexpected events occur, you’re in the best position to benefit from the protection your travel insurance provides.”
