At least two local insurance companies say they will no longer cover travellers for costs resulting from the collapse of airlines, hotels, rental car companies and other travel service providers.
Mike Henry Insurance and QBE say uncertainty within the travel industry following last week's terror attacks on the United States and financial problems at airlines have left insurers exposed to the risk of large payouts.
A statement issued by New Zealand's largest travel insurer, Mike Henry Insurance, says policies issued after 5.30 pm yesterday "will no longer provide cover for financial collapse for airlines, transport providers, or suppliers of other services, eg, accommodation providers, tour operators, hire car companies or wholesalers".
QBE made a similar change to its policies at midnight Tuesday night.
Rick Ballinger, manager of QBE's travel insurance division, said travellers should make their own judgment as to the reliability of travel service providers.
