Hays has just started offering this new extended insurance cover “as standard” to customers through Rush Insurance Services and Allianz Insurance.

Unlike previous policies, it covers cancellation or curtailment of holidays, emergency medical expenses and repatriation from Covid-19 diagnosis, as well as other diseases classed as epidemics or pandemics.

It also covers cruise holidays where clients are confined to their cabins or lose out on port calls or pre-paid shore excursions because of Covid-19.

Managing director John Hays said the new policy would give customers “real confidence” that they would not lose out financially if they contracted the coronavirus before going away.

“To have that Covid cover, we believe it’s a first in that it allows cancellations,” added Hays. “If you catch it before you go, you will get your money back, which hasn’t been the case with previous policies.

“It’s been another major reason for people not to book. We’re really excited about it and it’s going down really well with clients – offering that reassurance is massive."

The new policy also applies to holidays in the UK as well as travel abroad.

“We have worked hard with our partners to put together insurance cover that answers the concerns that many of our customers naturally have as we gradually emerge from the lockdown,” added Hays.