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There’s usually nothing more carefree than sailing away on a luxury cruise liner. And once people have selected their ship, destination and travel dates, there’s nothing else to worry about until the trip is over. Or is there?

The story of the Cortes family who were put ashore in the Bahamas a few years ago during a 5-day cruise is a case in point.

On one night during the cruise the family’s 8-month old baby began vomiting and having diarrhea, so they took her to the ship’s doctor. The doctor diagnosed Baby Zoie as being severely dehydrated and in need of hospitalization ashore.

As a result, the family were rushed off the ship late at night in Nassau and sent to the local emergency room where Zoie was diagnosed with nothing more than a common cold. Unfortunately, by this time the ship had left Nassau and the Cortes family was stranded in a foreign country without passports, lodging or transportation.

The family eventually made their way back home, but not without incurring close to $2,000 in expenses for medical bills, new passports and transportation back to Florida, never mind the cost of a ruined vacation. And the Cortes family got off lightly — if they’d been cruising further from home with a seriously ill child, they could have easily spent more than $20,000 just for medical treatment and emergency evacuation.

The saga of the Cortes family is a good example of why most vacationers – especially those travelling outside their own country — should have some form of travel insurance. Unfortunately, many people don’t understand the types of travel insurance available to them, or the risks of not buying it before their trip.

There are four main types of travel insurance used by vacationers: Medical/Life insurance; Trip Cancellation/Interruption; Baggage Loss and Personal Effects Coverage; and Trip Delay. Some of these such as baggage loss and trip delay may be covered in your home insurance policy or by your credit card policy, so it pays to check them out before buying additional insurance. Likewise, if you have private medical insurance, check out your policy to see what it covers.

Medical/Life: Coverage can vary by provider, but the best type of policy will cover medical treatment, prescription drugs, emergency evacuation (if warranted), accidental loss of life, sight and limb, and repatriation benefits (flying home remains). It will also provide a toll-free number for personal assistance. This can be bought for a single trip or for multiple trips in one year.

Trip Cancellation/Interruption: Reimburses the policy holder for travel costs lost due to cancellation of the trip (for legitimate reasons) and/or disruption of the trip while in progress. This is a good way to protect the cost of your cruise fare should you have to cancel your trip (conditions apply). The cost of this insurance usually runs between 3 to 8% of the total cost of the vacation that you are ensuring.

Baggage Loss & Personal Effects: This policy typically covers you for loss or delay of baggage, and for personal property stolen en route or in hotels. It also provides a set amount that can be spent daily while waiting for lost luggage to arrive.

Trip Delay: Provides financial compensation for costs incurred as a result of delays in pre-booked transportation. For example, if a plane is delayed more than 4 hours, set amounts can be spent for items like food, refreshments, hotels, etc.

These types of policies can be purchased separately, and the latter three are also available in one package, which can be a better deal. However, depending on the coverage you already have via home insurance and credit cards, you may not need all of them.  

Insurance can be purchased from your travel agent or the cruise line when making your initial booking, or at a later date before the final payment is due. Or, you can buy it from your insurance broker or a financial institution like RBC Insurance.

But wherever you get it, make sure you need what you are buying. Read the policy when it arrives to ensure you understand what conditions and exceptions may apply. And if you have any questions, don’t be shy about asking.

Hopefully, your next vacation will be trouble free and you’ll never need to use your insurance. But if something does happen, you’ll be grateful you didn’t leave home without it.

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