American International Group’s travel insurance unit has started marking lodging coverage for travelers prevented from boarding a commercial flight to the U.S. after receiving a positive COVID-19 test.

“We understand there are increasing numbers of people who feel ready to travel internationally, but they want additional safeguards in place including financial coverage in case they should need to remain at their destination country longer than originally planned,” Jeff Rutledge, CEO of AIG Travel, said in prepared remarks. “This new offering will help people to once again travel with confidence.”

The optional lodging expense cover is meant to address the new CDC requirement (in effect since Jan. 26) that international travelers get a COVI19 test within three days before entering the U.S., and present a negative test before boarding their flight. Any travelers that test positive would need to stay in the country until they have proof of testing negative for COVID. As AIG Travel notes, such a delay might require unexpected lodging accommodations as a result.

AIG Travel explains that its Lodging Expense Bundle may cover up to $500 per person for certain additional lodging expenses, available to most new and existing policyholders who select AIG Travel’s Preferred or Deluxe travel insurance plans and indicate a destination outside the U.S. New York residents don’t yet have this.)

Residents of U.S. states and the District of Columbia traveling to Costa Rica will have access to a customized version of the Lodging Expense Bundle to address the country’s new entry requirement that U.S.-based visitors must secure and show proof of a travel insurance policy that includes up to $2,000 in lodging expense coverage. This customized version, which would cover up to a total of $2,000 per person in additional lodging expenses, is only available to those Costa Rica-bound travelers who select either the Preferred or Deluxe travel insurance plan, AIG Travel said. (Travel bundles also exclude New York for now.)

The Lodging Expense Bundle is part of a number of optional product upgrades AIG Travel introduced in 2020. These optional bundles are designed to help customers customize an insurance plan their specific travel needs, either by increasing the existing coverage limits on certain plans, or by introducing coverage benefits or features not previously available. These enhancements include the Pet, Medical, Baggage, Wedding, Inconvenience, Adventure Sports, Security and the Name Your Family Bundles, AIG Travel said.

With travel on the rise, travel insurance is increasingly becoming a pandemic staple, Reuters and others have reported. In addition to AIG, AXA and travel insurance company Seven Corners are among companies marketing coverage for the new COVID-travel realities.

Source: AIG Travel