IT outage: 4 ways travel insurance can help if your trip was affected

Scenes of disgruntled holidaymakers stuck in check-in queues that snake around the airport have become all-too familiar during peak holiday seasons. But this summer's travel meltdown isn't due to strike action or natural disaster - it's down to a global IT outage.

A faulty software update by tech firm Crowdstrike wiped out more than eight million Microsoft devices on Friday, July 19, affecting everything from flights and trains to healthcare services. While a 'fix' was quickly deployed, and many systems are now back online, problems at airports have continued.

If your getaway plans were affected by the disruption, check your travel insurance to see what you're covered for. Here, Which? takes a look at how the IT outage impacted transport in the UK and what protection your existing policy could offer. 

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What happened?

A worldwide IT outage on Friday, July 19, ground a number of services to a halt, sparking chaos at airports and railways in particular. Over the weekend, dozens of flights at UK airports were cancelled or delayed, and problems stretched into Monday as operators struggled to recover.

The disruption happened at one of the busiest times of the year, as schools break up for the summer holidays, and impacted thousands of passengers. The situation appears to have calmed now - for example, flights departing from London's Heathrow and Gatwick are now mostly on schedule - but make sure you check before travelling to the airport.

• Find out more: best travel insurance companies and policies

4 ways travel insurance can help

If your journey or holiday has been affected by the global IT outage, travel insurance policies may cover disruption to your journey - either automatically or as an optional extra. Below are some of the main ways your existing cover could help.

1. Flight delays and cancellations

If your flight is cancelled or seriously delayed, first seek compensation from the airline or holiday provider directly.

For example, passengers on flights disrupted to and from Europe and on British or European airlines anywhere in the world are entitled to be rebooked as soon as possible and provided with hotels and meals at the cancelling airline’s expense. To find out the airline’s specific procedure for making a claim, check its website or give them a call.

However, if the airline is forced to cancel the flight due to circumstances outside of their control - a global IT outage, for example - then you might not be entitled to compensation from the airline. If this is the case, it's worth checking what’s covered by the cancellation part of your travel insurance. You may be able to claim the cost of your holiday, for a hire car, to cancel a connecting flight or to cover a hotel room you pre-booked.

Which? Travel editor Rory Boland says even if airlines successfully claim these were circumstances outside of their control and deny compensation, there is a limit to this argument, and passengers affected by disruption several days after the outage should still lodge a claim. 

He says: 'Regardless of the reason for the disruption, passengers can always claim a refund for a cancelled flight if they have not been rerouted.'

If you bought your airline tickets with a credit card, you may also be able to make a claim under Section 75 of the Consumer Credit Act 1974. As you won’t have to pay an excess with a Section 75 claim, you may find you get more of your money back this way, although this is not guaranteed.

• Find out more: how to claim compensation for a delayed or cancelled flight or train journey

2. Hotel costs

If your hotel was booked separately to the flight rather than bought as part of a package deal, things become trickier.

You should be entitled to a refund for the flight if the operator cancelled, but the accommodation provider may expect you to still honour your booking. Some places will allow you to cancel and rebook 24 hours before check-in. 

But if that's not the case, you will have to contact the hotel directly or check your travel insurance policy to see if you're covered. More expensive policies may pay for alternative accommodation, so make sure you review your terms and conditions.

• Find out more: your package holiday cancellation rights

3. Missed departure

The IT outage also disrupted Britain's railways, meaning holidaymakers may have missed their flights because their train to the airport was late or cancelled. Travel insurance can help cover the costs of missed departures but check the terms and conditions first. 

Our analysis of 129 travel insurance policies in April 2024 found you can claim on some 93% of policies if unexpected transport delays cause you to miss your flight. But if you need this cover for outgoing, connecting and return flights (for example, if you have a complex long-haul journey), we found that just 43% of policies will offer what you need.

4. Abandonment

Most travel insurance policies allow you to abandon your holiday if you’ve been delayed a certain amount of time – usually 24 hours – on your outward journey. Some policies also cover the abandonment of part of a trip when there is a delay of a certain length on a connecting flight. The insurer will pay for the cost of the abandoned trip or the abandoned part of the trip. 

Our analysis found that 96% of policies will cover travel abandonment and 89% will cover pre-paid transport if you've had to abandon your trip. But different policies will have various minimum number of hours that your flight must be delayed by to be considered eligible for abandonment cover — it's usually 24 hours, but some may say 12 hours. We also found that a third of policies don't cover connecting flights.

How do I choose the best travel insurance policy?

Always shop around for the best deal first. Price comparison sites that allow you to view multiple travel insurance quotes at a glance are a good place to start. The main ones for insurance are Compare the Market, Confused.com, GoCompare and MoneySuperMarket. 

Once you've found a deal that is right for you, check how Which? reviewed the provider and policy. We have rated hundreds of policies, scrutinising more than 60 areas of cover in each one, including medical expenses, cancellation and airline failure.

Travel insurance is complex, however, and even highly rated providers may not be suitable for everyone. To find out more, take a look at our reviews of individual insurers. For example, we have gone into more detail about all our top-rated providers, including NFU Mutual, AllClear and Avanti.

Finally, check the policy wording carefully before you buy, as well as any general exclusions and conditions.

• Find out more: travel insurance explained

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