Czech insurance companies are refusing to insure travel agencies against bankruptcy as a result of the coronavirus pandemic, according to a survey carried out by the Czech News Agency. It spoke with numerous insurers about their current policies and found that in many cases, those who are getting insurance or who have managed to renew their bankruptcy insurance policies are having to pay more. ERV Evropská pojišťovna’s spokesman Vlastimil Divoký said “This year, we had to refused three travel agencies who were applying for the first time and we didn’t extend the policy of another.” He said the reasons tended to be poor profitability, unrealistic business plans or poorly chosen vacation destinations. He said the company is only offering bankruptcy insurance for new travel agencies in exceptional cases. Generali Česká pojišťovna claims it’s negotiating with its clients to adjust the conditions of their policies, including demanding higher deductibles. Česká podnikatelská pojišťovna’s spokeswoman said her company currently had 162 travel agencies customers, which is 20 percent less than a year ago, though she added that the company turns down dozens of applications each year.
