My wife & I just recently booked a 10-day safari in March of next year and we thought it would be a good idea to also buy some trip insurance because there is so much money involved. We had two primary reasons for wanting insurance: Our parents are elderly and we’re concerned that one of them might kick the bucket right when we’re ready to depart, in which case we’d probably have to skip the trip, or face excommunication by the rest of the family. As well, we were also hoping that the insurance would offer some protection in case the TO stiffs us or goes out of business. In our case, we booked with a TO who is based out of TZ, but has an office in the U.S. It's not that we don't trust the TO, but it happens all the time where businesses get into trouble and well, one never knows…
During this past week I looked at a lot of insurance plans via InsureMyTrip and SquareMouth and most of the plans will cover trip cancellation due to financial default of a tour provider. However, they all had a clause that excluded this coverage if the trip was purchased directly from the tour provider. In other words, they would only cover financial default of the TO if the trip was purchased through a Travel Agency. Strange. I even called two insurers and also SquareMouth and they all confirmed my interpretation was correct. Since we purchased directly from the TO, our trip would not be covered if the TO goes belly-up.
On a whim, I decided to call AAA. It took several e-mail exchanges and multiple phone calls to get a straight and reliable answer, but sure enough, their policy does not have that sneaky little exclusion that all the other policies had.
I realize a lot TA followers are from Canada, Europe and elsewhere, and my FYI about AAA may be useless to many, but for my fellow Americans, this is your heads up to read the fine print!