Working Holiday Travel Insurance: What It Covers During Your Trip

Canada, the UK, and Australia are among the most popular Working Holiday destinations, and travel insurance is one of the most searched requirements for people planning a Working Holiday abroad. That makes sense. Travel insurance helps protect you when things go wrong on the road, and unexpected problems can quickly become expensive.

However, this is where many travellers get caught out. A basic travel insurance policy is often not enough for a Working Holiday, especially in countries like Canada. While travel insurance covers common trip-related issues, it does not replace proper health insurance and may not meet visa or entry requirements on its own.

In this guide, we’ll break down what a typical travel insurance policy actually covers for a Working Holiday, why it’s still important to have one, and how it differs from health insurance. Understanding this difference is key to making sure you’re properly covered and compliant before you go.

Key takeaways for your Working Holiday Travel insurance

• Travel Insurance is optional but highly recommended for your Working Holiday adventure.
• Health insurance is mandatory under the Working Holiday rules in Canada, and you must be able to prove it at the border.
• Read the policy wording carefully so you understand exclusions, limits, and what counts as “covered”.

What is Travel Insurance for a Working Holiday?

Travel insurance is intended to cover unexpected expenses related to your trip when you are outside your home country, ensuring you are protected while travelling abroad.

• Trip cancellation or interruption
• Lost, stolen, or delayed baggage and documents
• Missed departures
• Travel delays
• Transportation to a hospital or back home for medical care in case of an emergency.

Travel Insurance vs. Health Insurance (and why you should have both)

Many people use the terms interchangeably, but they are not the same. Health insurance is designed specifically to cover medical expenses, while travel insurance covers only trip-related issues.

While travel insurance is optional, health insurance is mandatory for a working holiday and other IEC programs. Proof of comprehensive insurance is a legal requirement for obtaining or activating your Working Holiday Visa in countries like Australia, Canada, and New Zealand.

That’s why many Working Holiday travellers acquire both. Read more about the differences in our article Travel Insurance vs. Health Insurance for Working Holiday and other IEC programs.

Key Benefits of Travel Insurance for your Working Holiday

Travel insurance protects you from expenses that could otherwise reach thousands of dollars. Key benefits might include:

• Protection if your trip is cancelled or cut short
  Get reimbursed for prepaid, non-refundable costs if you have to cancel your trip or return home early due to an unexpected event.

• Financial help if your baggage or documents are lost or delayed
  Receive compensation to replace essential items or cover emergency expenses if your luggage or important documents go missing.

• Coverage for missed departures
  Avoid paying out of pocket for new transport or accommodation if you miss a flight, train, or bus due to circumstances outside your control.

• Support during travel delays
  Get help covering extra meals, accommodation, or transport when delays disrupt your plans.

• Emergency transportation when it matters most
  Be covered for transport to the nearest suitable hospital or back to your home country if you need urgent medical care.

What to look for in your Working Holiday Travel Coverage

Missed departure

Missed departure cover helps pay for extra transport and accommodation costs if you miss your flight, train, or bus due to circumstances outside your control.

This is especially useful if you’re travelling across Canada, dealing with weather delays, or heading home at the end of your stay.

Travel documents and return tickets coverage

Travel insurance can help if your passport or visa is lost or stolen, covering replacement costs and emergency travel assistance.

Even with coverage, it’s still smart to protect yourself:

• store digital copies of important documents
• keep originals secure
• avoid carrying everything in one place

Types of Travel Insurance for a Working Holiday in Canada

Different trips suit different policies. Here are the most common options Working Holiday travellers compare.

Single-trip cover

Single-trip cover protects you for one continuous trip, often up to 365 days.

It’s ideal if:

• You’re entering Canada once
• You know how long you’ll stay
• You want straightforward coverage for your Working Holiday

Most working holiday participants choose single-trip cover because it’s simple and built around one long stay.

Annual multi-trip cover

Annual multi-trip cover is designed for frequent travellers who make multiple trips per year.

It can be useful if:

• You plan to travel outside Canada during your Working Holiday
• You want flexibility for short trips home or abroad

Be careful here. Many annual policies limit how long you can stay abroad per trip. If the per-trip limit is short, it might not work for a long Working Holiday stay.

Backpacker and Working Holiday cover

Backpacker or Working Holiday insurance offers more benefits than a basic travel insurnace, it is built specifically for long-term travel and working abroad.

These policies usually include:

• Long-duration coverage
• Work-related medical cover
• Emergency medical care
• Flexible start dates

This is often the best match for Working Holiday travellers because it’s built for long stays and real-life travel.

Many gap year and working holiday insurance policies also provide coverage for travel around the world, which is useful if Canada is only one part of a bigger trip.

Gap year travel

Working Holiday visas are often part of a gap year. Gap year travel tends to be longer, more flexible, and more unpredictable, which is exactly why insurance matters.

Gap year insurance is designed for:

• Long stays abroad
• Working while traveling
• Multiple destinations
• Flexible plans

It usually offers broader coverage than standard vacation insurance and can be a good fit if Canada is one stop in a larger trip.

Policy Options, Add-ons, and “additional cover” Worth considering

Once the basics are in place, you can tailor your coverage with add-ons. Common add-ons include:

• Winter sports cover: If you plan to ski, snowboard, or work at a ski resort, don’t assume you’re covered. Check the policy wording and add the correct cover if needed.
• Adventure sports cover: Higher-risk activities)
• Gadget cover (laptops, phones, cameras)
• Travel disruption cover (delays, missed connections)

Choose add-ons based on how you actually plan to live and work in Canada. If you’ll spend weekends on the slopes, get winter sports cover. If you’ll be doing physical work, check the policy’s work restrictions

Understanding your insurance policy: limits, exclusions, and restrictions

Before you buy, read the insurance policy carefully. It’s not the fun part, but it’s where you avoid problems later.

Pay attention to:

• Coverage limits
• Exclusions
• Excess or deductible fees
• Work restrictions
• Activity exclusions
• Trip length limits (especially for annual multi-trip cover)

Understanding insurance policy limitations

Not all insurance policies provide cover for every situation. Knowing the limitations up front can prevent unexpected medical expenses or denied claims later.

Common limitations include:

• Pre-existing medical conditions: medical costs related to a condition you had before the trip may not be covered unless you disclose it and meet the insurer’s criteria.
• Age limits: some policies restrict certain activities (like winter sports) by age or require extra cover.
• High-risk activities: skiing, snowboarding, and adventure sports can be excluded unless you add cover.
• Certain types of work: some manual jobs or higher-risk occupations may be excluded unless the policy specifically includes them.

If you’re unsure, ask the insurer directly before you buy. It’s better to clarify than to find out during a claim.

Tips for Buying a Working Holiday Travel Insurance

A simple way to choose the right policy:

• Start with your trip details: where you’re going, how long you’ll stay, and what you’ll be doing.
• Look for key benefits like emergency medical care, trip cancellation, and lost baggage protection.
• If you plan winter sports or physical work (like construction), most travel insurance wont covers these activities, you would need to acquire a Health Insurance with a specific policy that provides cover for those activities.
• Choose an insurer with 24/7 emergency assistance.
• Compare policies side by side: what’s included, what’s excluded, coverage limits, and excess fees.
• Check reviews and reputation, especially around claims support.

When it’s set up properly, insurance fades into the background, and you can focus on your trip.

Common Mistakes to Avoid

• Not reading the policy wording. Some policies won’t cover certain cancellations, non-refundable deposits, or specific activities.
• Assuming travel insurance and health insurance are the same thing. They overlap, but they’re not identical. The difference matters, especially for Working Holiday travellers in Canada.

Travel Insurance claims: what to keep and what to expect

If something goes wrong, you’ll need to file a claim. That usually means uploading or sending digital copies of forms, bills, and receipts related to your travel expenses or issues.

Make sure your travel insurance provider offers:

• Clear claims processes
• 24/7 emergency assistance
• Online claims submission

And always keep:

• Receipts
• Police reports for theft

A claim is much easier when you have documentation ready.

Working Holiday in Canada: IRCC Insurance Requirements

For participants of the International Experience Canada (IEC) program, obtaining comprehensive health insurance is mandatory, and you must provide proof upon entering Canada.

Important points to know:

• Your insurance must cover medical care, hospitalization, and repatriation
• It must be valid for the entire length of your stay
• Working holiday IEC participants cannot buy a short-term insurance policy and later extend it to meet the two-year requirement. Your policy should cover the full duration from the start.
• If your insurance is shorter than your IEC approval, your work permit may be shortened
• Border officers can ask for proof of insurance on arrival. If you cannot show it, you risk being refused entry or issued a shorter work permit.
• In Canada, provincial health coverage (applying for the provincial health card) is not considered adequate for working holiday participants by federal immigration officers, even if you plan to apply for it later.

Read our full article here about what must be covered by a Health insurance for a Working holiday in Canada.

More resources to prepare for your Working Holiday in Canada:

• How much does it really cost to move to Canada through a Working Holiday program?
• Biometrics for a Working Holiday in Canada
• Make sure you understand everything about police certificates
• How to correctly format and size your documents for your Working Holiday Application
• What documents will you need to add after submitting my WH application