A faulty IT update which led to the outage of over 8.5 million computers is expected to take weeks to recover. Last Friday, 19th July, more than 5,000 flights were cancelled with further delays and cancellations taking place over the weekend and into this week.
Holidaymakers have been left stranded with many not able to return home to the UK and others not being able to reach their holiday destination as planned. So, can travel insurance help?
Firstly, in the event of a flight cancellation, it is the airline’s responsibility to either offer you a refund or place you on an alternative flight – even if this is with a rival airline. If you accept the offer of a refund you will need to find your own way home, which, with limited flights and thousands of people stranded, will not be an easy task.
If you choose to wait for the airline to find you an alternative flight, and you are flown to a different airport the airline should cover the cost of onward travel. It is important you keep all receipts and choose the most cost-effective option.
In terms of compensation, the airline does not have to pay compensation if the delay or cancellation is due to an ‘extraordinary circumstance’. This will include, but is not limited to, IT outages caused by a third party, air traffic control issues, adverse weather etc.
Those who have a valid travel insurance policy which was brought before Friday’s IT outage may be able to claim a small amount of compensation.
Generally speaking, if you have already checked in, travel insurance will offer to pay a small amount of compensation per set amount of time you are delayed. This is usually to help towards refreshments and the terms, conditions and amounts will vary between insurers so be sure to check the ‘travel delay’ section of your policy.
When it comes to cancelling the holiday and claiming back non-refundable costs from your travel insurance company, having looked at the travel insurance market, IT outages seem to be a grey area. With this in mind, it is best to speak with your travel insurer directly to understand the cover that may be available to you.
Cover levels and exclusions will differ between travel insurance companies so it is important to check what you are entitled to.