The Atlantic archipelago is the first Spanish territory to offer this type of insurance, which will cover repatriation, medical expenses and quarantine, if someone falls ill with Covid-19.
The policy covers tourists both Spanish and foreign in any of the eight Canary Islands – Tenerife, Gran Canaria, Fuerteventura, Lanzarote, La Palma, La Gomera, El Hierro and La Graciosa.
The only condition is that one must not knowingly be aware of having Covid-19 before arrival, the Tourism Ministry said in a statement.
The agreement has been signed by a representative from Canary Islands Tourism and AXA Insurance.
Regional Minister of Tourism Yaiza Castilla said of the move: “The Canary Islands have furthered their commitment to reinforce and increase the safety and peace of mind of tourists. This is just one more attraction of the destination.”
Because of this agreement, AXA Insurance will make an exclusive telephone hotline available for those who take out the policy.
The protection of tourists through this policy will be in effect from the first week of August and will initially be valid for a period of 12 months.
The Canary Islands currently have a very low number of Covid-19 cases, with only 166 active cases across all the islands.
The smaller islands of La Gomera and El Hierro have just 8 and 1 cases respectively.
Tourism accounts for about 35 percent of the Canary's economic output, with tourists from Britain accounting for about a third of all visitors.
The Covid-19 pandemic hit Spain harder than most countries, with 28,499 deaths so far and a three-month lockdown which crippled the tourism sector.
Despite having a much lower infection rate than that of mainland Spain, the tourism sector on the islands has taken a hit from Britain's decision last month to require all people returning from Spain, no matter what region, to undergo quarantine.