Travel insurance protects the expenses paid while on a trip due to cancellation, delay and emergencies, states Sainsbury's Bank. If the trip is a cruise and the cruise company goes out of business, this coverage protects the traveler's investment. Travel insurance also covers medical emergencies and accidental death, as described by the Insurance Information Institute.
Trip Cancellation Insurance reimburses the travelers who must cancel a trip due a serious illness or death in the family, according to the Insurance Information Institute. If an immediate family member becomes seriously ill or injured on the trip, the travel insurance policy may reimburse the travelers for the unused part of the trip.
The Insurance Information Institute describes baggage or personal effects insurance as covering items that may be lost, stolen, or damaged on the trip. Emergency medical assistance provides coverage in extreme circumstances, such as needing to be airlifted, a long stay in a foreign hospital, or needing to be flown home due to serious illness. Accidental death insurance covers the expenses involved should one of the travelers die on the trip. Other available coverages include Dental, Emergency Evacuation, 24 Hour Traveler Assistance, Baggage Delay, Travel Delay, and options for Collision/Damage coverage for rental vehicles.