Does Cruise Insurance Guarantee Smooth Sailing?

By Catherine Powell

Image courtesy Microsoft Image Designer

While the cruise industry almost went down with the ship during the COVID pandemic, it has since rebounded big time. In fact, more than 35 million passengers are expected to sail this year, up 6% from last year.  The appeal of cruising is obvious.  Cruise ships not only offer travelers the opportunity to visit exciting destinations, they also provide everything from onboard entertainment to world-class dining and casino gaming.  Plus, you don't have to change hotels every time the ship stops at a port of call.  The only fly in the ointment is what can happen if something goes wrong during your cruise, or something untoward were to happen to you before you board the ship.  When you consider that you can expect to spend an average of $1,000-$6,000 for a cruise these days, many people looking to protect their investment consider acquiring cruise insurance.  If you're considering going on a cruise anytime in the near future, there are a few things you need to know.

What could go wrong?

1. What if you or someone in your family were to get sick, requiring you to cancel your reservation?

2. What happens if your flight is delayed or cancelled and the ship sails without you?

3. What would you do if your baggage was lost or stolen prior to setting sail?

4. If you suddenly became seriously I'll or got injured in a foreign port of call, how would you pay for treatment or hospitalization if your health insurer refused to cover you?

5. Should you require emergency evacuation from the ship, could you afford to pay for helicopter transport?

When most people consider taking a cruise, they usually only think about all the things they'll see and all the fun they'll have.  They don't consider what can happen if something goes wrong.  Below are a few tales of cruises that went horribly wrong in the recent past:

The Sky is Falling: In March 2019, cruising passengers were treated to more adventure than they bargained for when the ship's engines failed during a storm off the Norwegian coast.  Adrift in heavy seas, the Sky soon began taking on water, forcing nearly half the passengers to be evacuated by helicopter before tugboats were able to tow the vessel to the nearest port.

Those are the Breaks: In October, 2023, 64-year-old Denise Hammond broke her hip and elbow in a fall while aboard the Carnival Luminosa.  This forced her to wait four days for treatment until the ship made its next port of call in Manado, Indonesia.  The problem was that the hospital there didn't have the equipment needed to repair the damage done to her.  The cost to transport her to the nearest hospital that could treat her injuries in Bangkok was raised via GoFundMe while the ship was still at sea.   Fortunately for Ms. Hammond, the hospital in Bangkok was able to perform the operation needed to help her fully recover.

An African cruise turned into a safari for eight passengers earlier this year when they didn't make it back  before the 3 pm deadline after taking a private excursion.  As a result, their ship sailed away without them.  This  forced the group to trek for a week to various ports at their expense until they finally connected with the cruise ship again in Senegal.

Dream Cruise Turned into a Nightmare in May 2023 when the Carnival Sunshine sailed into a storm with 80 MPH winds that caused water to cascade into staterooms and down hallways while returning to Charleston, South Carolina.  One passenger who was aboard the ship at the time stated in an interview that was broadcast on CNN, "I knew we were in trouble when the crew started getting the lifeboats ready in case they had to put us out there in 40-foot waves."  

Image courtesy Microsoft Image Creator

How does Cruise Insurance Work?

Cruise insurance is designed to reimburse passengers for everything from trip cancellation, delay or interruption, to baggage protection, medical coverage,  and in some cases emergency evacuation.  Optional add-ons can include coverage for existing medical conditions and the option to cancel the trip for any reason.  Cruise insurance can be booked through the cruise line, or you can purchase coverage separately, although some cruise lines require passengers to purchase travel insurance a certain number of days before departure, or before the final payment date when charges become nonrefundable.

You also need to read the fine print on any travel insurance to find out about the limits, stipulations, and exclusions.  Purchasing the lowest cost insurance may not provide the coverage you may later need.  While some policies offer to reimburse you for the full price of the cruise, others only offer partial payment.  Prices for cruise or travel insurance typically run between $50 to $200 per passenger, depending on the cost of the cruise you choose and the add-ons selected.  There are also policies designed to cover entire families.

An alternative to cruise insurance is offered by some credit card companies. These typically include travel protection for such things as lost luggage, trip delays, interruption or cancellation, and emergency evacuation coverage.  One thing credit card cruise coverage doesn't usually provide is the ability to cancel your cruise for any reason.  (Check with your credit card company to find out what kind of travel coverage is offered if you book your cruise using their card.)

If none of your credit card companies offer to cover your next cruise, you should consider looking into cruise insurance before you book your next voyage. While it doesn't guarantee smooth sailing, it can  provide you with peace of mind that could keep and you and yours from being left high and dry.

Catherine Powell is the owner of A Plus All Florida, Insurance in Orange Park, Florida.  To find out more ways to save on flood insurance, check out her website at http://aplusallfloridainsuranceinc.com/