The One Way Travel Insurance Can Help During the Government Shutdown

The government shutdown is wreaking havoc on U.S. travel. Essential airport workers, including air traffic controllers and TSA agents, have been working without pay since Oct. 1, leading to staffing shortages, delays and cancellations at airports nationwide.

On Friday, Transportation Secretary Sean Duffy cut flight capacity by roughly 10%, which is expected to ground up to 4,000 flights daily, including departures from Chicago’s O’Hare, Atlanta’s Hartsfield-Jackson, Los Angeles International, New York’s John F. Kennedy, and dozens of other major airports. Cancellations could climb to 20% if the shutdown continues, Duffy told Fox News.

While travel insurance can be a lifesaver, it usually doesn’t cover cancellations or delays due to known events, like military conflicts, named hurricanes and, yes, government shutdowns.

There is, however, one exception that can come in handy for travelers nervous that the ongoing stoppage will ruin their plans.

If a flight is late or canceled, the airline must provide a written explanation. In some cases, it’s put down to a “common carrier issue” — a broad category that can include mechanical problems, inclement weather and staffing shortages.

Airlines are required to refund tickets for canceled flights, regardless of whether you have insurance or not. But if the shutdown results in a delay or cancellation that your airline attributes to a common carrier issue, your policy could cover incidentals at the airport as well as non-refundable deposits for hotel rooms, excursions and more.

“It’ll depend on how the airlines categorize any cancellations or delays,” Squaremouth spokesperson Lauren McCormick told CNBC Select via email. “Travelers should carefully review their policy’s trip delay and cancellation language, particularly regarding ‘common carrier’ disruptions.”

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That’s why it’s essential to plan ahead, including budgeting a lot more time to clear security checkpoints. Having a CLEAR membership or TSA PreCheck can save time, but try to arrive at least two or three hours before departure, even for domestic flights. You can also check wait times with the MyTSA app.

Download your airline’s app before your day of departure, opt in to airline notifications and check your flight status frequently. The FAA’s National Airspace System Status site provides the latest information on current and potential airport ground stops and delays.

Communication with your airline will be key. “Make sure that you have given your airline all your correct contact information so you get updates on your flights,” says John E. DiScala, founder of travel site Johnny Jet.

Some airlines will automatically rebook you onto another flight, but others will give you the option of choosing your own flight. “You’ve got to act fast,” said DiScala. “If you already have the app, you can just open it and choose what you want.”

If you’ve been automatically rebooked onto a flight that doesn’t work for you, try the airline app’s chat feature or reach out on social media, as phone lines are likely to be busy. If you’re already at the airport, the customer service counter should be your first stop.

Traveling for an important event you can’t miss? DiScala recommends making a backup plan. Research alternative ways to reach your destination. If you must fly, book two flights.

“If you’re booked on American from Los Angeles to New York, book a flight on Delta or United for a few hours later,” he said. “If your flight goes as planned, you can cancel the second one with your miles and points for no charge.”

Travelers who don’t use points should buy a refundable ticket or one that offers a travel credit.

Lastly, DiScala advises, “If you are delayed or canceled, document everything and keep the receipts.”

At CNBC Select, we work with experts with specialized knowledge and authority. For this story, we interviewed Lauren McCormick, manager of public relations and social strategy for travel insurance marketplace Squaremouth.

We also spoke with John E. DiScala, founder of travel blog Johnny Jet. DiScala has been covering the travel industry since 1999 and has visited more than 75 countries. He’s been featured on CNBC, CNN, NBC, CBS, PBS and elsewhere and hosted the Travel Channel special Hot Spots 2012.

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