As concerns grow over a potential government shutdown, many travelers assume their travel insurance policy will cover any disruptions. However, experts warn that most travel insurance plans may not protect you from cancellations, delays, or losses caused directly or indirectly by a government shutdown.
Understanding what travel insurance does—and does not—cover is critical before finalizing travel plans during periods of political uncertainty.
What Happens During a Government Shutdown?
A government shutdown occurs when lawmakers fail to pass funding legislation, forcing parts of the federal government to close temporarily. During a shutdown:
- National parks and monuments may close
- Passport and visa processing can slow or halt
- TSA and air traffic control staff may work without pay
- Federal services operate with limited capacity
While commercial flights usually continue, the ripple effects can disrupt travel plans in unexpected ways.
Why Standard Travel Insurance Often Falls Short
1. Shutdowns Are Considered “Foreseeable Events”
One of the biggest reasons travel insurance may not apply is that government shutdowns are often considered foreseeable once they are publicly debated or announced.
Most travel insurance policies exclude coverage for:
- Known events
- Foreseeable risks
- Government actions or inactions
If you buy insurance after shutdown warnings dominate the news, insurers may deny claims related to those disruptions.
2. Government Actions Are Commonly Excluded
Many standard policies specifically exclude losses caused by:
- Government regulations or orders
- Political decisions
- Border closures or agency shutdowns
That means if a shutdown leads to museum closures, visa delays, or limited embassy services, your policy likely won’t reimburse you.
3. Flight Delays Still May Not Qualify
Even if a shutdown affects staffing at TSA or air traffic control, airlines often continue operating. Travel insurance typically covers delays only if they exceed a specific number of hours and result from covered causes like weather or mechanical failure.
Staffing shortages tied to a shutdown may not qualify as a covered reason.
4. Missed Experiences Are Rarely Covered
If your trip includes:
- National parks
- Government-run museums
- Federal landmarks
Travel insurance generally does not reimburse for prepaid tours or experiences canceled due to government closures unless your entire trip is canceled for a covered reason.
When Travel Insurance Might Help
While coverage is limited, there are a few situations where travel insurance may still provide protection:
Covered Medical Emergencies
Medical coverage remains valid regardless of a shutdown. Emergency treatment abroad, hospital stays, and medical evacuation are typically covered.
Trip Interruption for Covered Reasons
If a shutdown indirectly causes a covered event—such as severe weather that cancels flights—insurance may apply, but only if the cause itself is covered.
“Cancel for Any Reason” (CFAR) Policies
CFAR upgrades offer the most flexibility. They allow travelers to cancel for almost any reason and receive partial reimbursement (usually 50%–75%).
However:
- CFAR must be purchased shortly after booking
- It costs more
- It reimburses only a portion of your expenses
What Travel Insurance Will Almost Never Cover
In a government shutdown, travel insurance typically will not cover:
- Voluntary trip cancellations due to fear or inconvenience
- Closed national parks or federal attractions
- Delays caused by government staffing issues
- Slower passport or visa processing
- Political uncertainty or budget disputes
What Travelers Should Do Instead
Book Flexible Travel Options
Choose airlines and hotels with:
- Free cancellation
- Flexible rebooking policies
- Refundable fares
Read the Policy Carefully
Before purchasing insurance, review:
- Exclusions for government action
- Definitions of “covered reasons”
- Foreseeability clauses
Monitor Government Announcements
If shutdown risks are rising, buying insurance late may reduce or eliminate coverage related to those events.
Consider CFAR Coverage Early
If flexibility is critical, CFAR may be worth the extra cost—but only if purchased within the required window.
Final Thoughts
Travel insurance is a valuable tool—but it is not a blanket guarantee against every disruption. During a government shutdown, many travelers are surprised to learn that their policies offer little or no protection for cancellations tied to political decisions or federal closures.