Travel Insurance - not paying out for hotel cost as "staff shortages" aren't included

Grim72

We had an Easyjet flight from Edinburgh to Jersey cancelled the night before we were due to fly in April (approx 10 hours notice). We got a refund for the flight without any hassle but when I have tried to claim the cost of the hotel (approx £1k) I've been told by the insurance company (Collinsons) that the policy does not cover "staff shortages".

I'm not sure how/why I should have to cover the cost caused by Easyjet overselling their flights and being unable to fulfill them. I'm also concerned that we booked the insurance at the same time I booked the flights with Easyjet and they have an affiliation with them - I suspect the sheer volume of similar claims will be forcing them to avoid paying out or risk losing a fortune.

I have raised a complaint with Collinsons and they say they will review and get back to me within 40 days. I'm not hopeful though. I just wondered if anyone has had similar issues - we had had this holiday booked since before COVID and had seen it postpones several times so to lose out again at the last minute was heartbreaking. I'm now wary of booking any holidays for Summer as I fear "staff shortages" will continue and any hotel bookings I make will leave me in the same boat and even further out of pocket.

Any legal/insurance experts able to offer any thoughts/suggestions? I will raise the issue with the financial ombudsman service if I don't get a positive reply from Collinsons - I just feel it is a waste of time booking insurance when they find reasons not to pay out even though it is completely out of your control and a direct result of bad management by the flight company? 

Similarly if anyone can recommend an insurance company that does cover hotels if the airline company cancels the flight due to an excuse of "staff shortages" please let me know?

lisyloo

Have you looked at your policy and what it says about cancelled flights?

onashoestring

In addition to the refund of your flights you maybe entitled to claim a set amount of compensation from Easyjet.

It will Depend on the reason the flight was cancelled  .

You can find more information in  the flight cancellation section here : 

https://www.moneysavingexpert.com/travel/flight-delays/

For an insurance policy to cover this scenario you need one that covers abandonment.

ReadingTraveller

I've just been checking my insurance policy, with Staysure so quite a good one, and I don't think it would pay out in this circumstances. I might we'll be in the same position in two weeks so it's a concern. Holiday cancellations due to flight cancellation only seem to be covered for industrial action, breakdown, weather, or ATC issues. 

onashoestring

Nationwide FlexiPlus Travel insurance covers abandoned departure - however it also states

“We won’t pay for any claim where compensation is available from your  transport operator ( for example EU passenger rights ) unless you have documentation from them explaining why no compensation was given”

So you need to claim compensation from the airline in the first instance.

Grim72

Thanks for the feedback so far guys - I suspect there will be a lot of people like myself that assumed their policy (which does include hotels) would get compensation without realising that "staff shortages" were an exemption. I've contacted a few other insurance companies to ask the question if their policy would cover the hotels etc if the same were to happen in July but not found any that will cover it. So be warned people - you might get your cost of flights back but any hotels/excursions etc you have booked are likely not going to be paid back to you. I mean - not as if when you book a flight that you are goign to be booking hotels too for your holiday is it lol. So blooming annoying!

Grim72

onashoestring said:

In addition to the refund of your flights you maybe entitled to claim a set amount of compensation from Easyjet.

It will Depend on the reason the flight was cancelled  .

You can find more information in  the flight cancellation section here : 

https://www.moneysavingexpert.com/travel/flight-delays/

For an insurance policy to cover this scenario you need one that covers abandonment.

The policy itself states accommodation is covered (up to £1k) - see image - which is why I had assumed I'd be covered (without having to take a law degree in understanding the 40+ pages in the Ts and Cs).

Then in the documentation itself it states the below (I'm still not sure if this means "staff shortages" which is why they wont pay out):


Travel delay, abandonment, missed departure and missed connection
What is not covered
We will not pay for:
1.Anything mentioned in ‘General exclusions’.
2.The excess in your policy schedule.
3.Any claim caused by or resulting from
A.the withdrawal of an aircraft, cross-channel train or sea vessel from service (temporarily or permanently) on the recommendation or order of any government, civil aviation authority, port authority, rail authority or similar authority in any country;
B.closure of airspace;
C.closure of your scheduled point of departure; and/or
D.natural emergency, medical epidemic or pandemic.
4Any claim which is the result of
A.any form of industrial action, strike, failure, cancellation or interruption of public transport services in existence or announced on television, news bulletins or in the media before you booked a trip or bought this insurance if later.
B.industrial action or strike by the directors, employees, contractors or subcontractors of easyJet Airline Company Ltd or any subsidiary or affiliated company.
5.Any claim which is the result of your private car not being fully roadworthy before breaking down on the way to your departure point.
6.Any claim which is the result of you missing your departure because of heavy traffic or road closures, and you did not leave enough time to reach your departure point.

lisyloo

Grim72 said:

Thanks for the feedback so far guys - I suspect there will be a lot of people like myself that assumed their policy (which does include hotels) would get compensation without realising that "staff shortages" were an exemption. I've contacted a few other insurance companies to ask the question if their policy would cover the hotels etc if the same were to happen in July but not found any that will cover it. So be warned people - you might get your cost of flights back but any hotels/excursions etc you have booked are likely not going to be paid back to you. I mean - not as if when you book a flight that you are goign to be booking hotels too for your holiday is it lol. So blooming annoying!

This is why it’s loads better to book a package if you can.

Grim72

lisyloo said:

Grim72 said:

Thanks for the feedback so far guys - I suspect there will be a lot of people like myself that assumed their policy (which does include hotels) would get compensation without realising that "staff shortages" were an exemption. I've contacted a few other insurance companies to ask the question if their policy would cover the hotels etc if the same were to happen in July but not found any that will cover it. So be warned people - you might get your cost of flights back but any hotels/excursions etc you have booked are likely not going to be paid back to you. I mean - not as if when you book a flight that you are goign to be booking hotels too for your holiday is it lol. So blooming annoying!

This is why it’s loads better to book a package if you can.

It is but by booking everything myself individually I saved over £500 (in the misguided assumption I'd be covered by my travel insurance). Can't win really lol

lisyloo

Grim72 said:

lisyloo said:

Grim72 said:

Thanks for the feedback so far guys - I suspect there will be a lot of people like myself that assumed their policy (which does include hotels) would get compensation without realising that "staff shortages" were an exemption. I've contacted a few other insurance companies to ask the question if their policy would cover the hotels etc if the same were to happen in July but not found any that will cover it. So be warned people - you might get your cost of flights back but any hotels/excursions etc you have booked are likely not going to be paid back to you. I mean - not as if when you book a flight that you are goign to be booking hotels too for your holiday is it lol. So blooming annoying!

This is why it’s loads better to book a package if you can.

It is but by booking everything myself individually I saved over £500 (in the misguided assumption I'd be covered by my travel insurance). Can't win really lol

Yes it’s more expensive but they are liable for providing the entire package.
I sympathise and before the pandemic I would have been happy with independent arrangements.
it bound to be more
expensive to get better coverage than a no frills airline that doesn’t help
people much if at all.

onashoestring

Grim72 said:

lisyloo said:

Grim72 said:

Thanks for the feedback so far guys - I suspect there will be a lot of people like myself that assumed their policy (which does include hotels) would get compensation without realising that "staff shortages" were an exemption. I've contacted a few other insurance companies to ask the question if their policy would cover the hotels etc if the same were to happen in July but not found any that will cover it. So be warned people - you might get your cost of flights back but any hotels/excursions etc you have booked are likely not going to be paid back to you. I mean - not as if when you book a flight that you are goign to be booking hotels too for your holiday is it lol. So blooming annoying!

This is why it’s loads better to book a package if you can.

It is but by booking everything myself individually I saved over £500 (in the misguided assumption I'd be covered by my travel insurance). Can't win really lol

The only way around this is to book accommodation that permits last minute cancellation ( this  usually cost more ) or a travel insurance like Nationwide Flexiplus that covers abandonment .