American Airlines’ parent company has filed for bankruptcy, but travelers need not worry about losing their reservations, say industry analysts. But one just has to look back at other airline bankruptcies to note that filing for bankruptcy and canceling operations go hand-in-hand. Trip cancellation insurance can help save you and your trip against such a situation, so that you are not inconvenienced financially.

Most travel cancellation insurance plans offer coverage against the bankruptcy of a travel supplier (be it a travel agent, hotel, or other travel-related service) or an airline. In the case of airlines, alternate arrangements are usually made. The insurance plan will reimburse the plan holder for any difference in cost related to the change in carrier, if applicable.

Trip cancellation insurance can also protect a trip, especially an expensive trip, against several other occurrences including the death of a close family member or traveling partner, the cessation of travel services due to bad weather, and termination of employment. Interruption of the trip necessitating the early return to the home country is also usually covered. Plans vary in coverage, and it is best to check plan benefits with your particular insurance plan.

Travel medical insurance plans sometimes come packaged with trip cancellation benefits as well, for an affordable yet comprehensive insurance plan for an entire trip. Trip cancellation insurance can ensure that you remain relaxed during your trip, no matter what.