I, as well as travel insurance industry experts, expect that there will be a significant number of travel insurance claims filed as a result of the recent (and continuing) volcanic eruptions in Iceland. According to the industry, approximately 30 percent of travelers carry travel insurance.
Travel insurance generally covers medical expenses incurred while traveling as well as increased costs as a result of flight cancellations/delays. As an attorney, I have handled travel insurance claims for travelers, and suspect that there will be many improper denials flowing from these claims. I will not be surprised if many insurers try to deny the claims based on an "adverse weather" condition exclusion. However, volcanic eruptions are not "adverse weather." Even with "adverse weather" most policies cover the event if it causes the airline to cease operations for a specific time period – usually 24 hours.
As with most of my claims, if I take a travel insurance case and am successful, the insurer must pay my fees and costs, and if I lose, I’ll work for free.
As an insurance lawyer who represents only policyholders, I want you to know that when an insurance company says "no," that is not the end of the inquiry, it is only the beginning!