Can I claim travel insurance if my flight was delayed, not cancelled?
- 23.07.2026
I’m launching a new startup in Malta and I approached an insurer for business liability coverage, but I was declined without much explanation, and I suspect it’s simply because the business is new with no trading history yet. Is it actually legal for an insurer to refuse coverage purely on this basis?
Insurers generally have commercial freedom to decide which risks they are willing to underwrite, and declining to offer coverage to a business with no trading history is not inherently unlawful under Maltese insurance regulation connected to the Insurance Business Act, Chapter 403 of the Laws of Malta, since underwriting decisions are fundamentally based on the insurer's own risk appetite and assessment criteria, and a lack of trading history genuinely can be a legitimate factor affecting how confidently an insurer can price a particular risk. That said, being declined by one insurer does not mean you are uninsurable generally, since different insurers have different risk appetites and some specialise specifically in providing coverage to startups and newer businesses, meaning working with an insurance broker who understands the market can often help identify insurers more willing to work with a business at your stage, potentially with adjusted terms, higher premiums, or specific conditions reflecting the limited trading history rather than an outright decline. If you continue to face difficulty securing coverage, it would be worth having a broker specifically approach insurers known to work with early-stage businesses, and provide as much supporting information as possible about your business plan, founders' relevant experience, and risk management practices, since this can sometimes help offset the lack of trading history in an insurer's assessment.
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