In Reply to: Travel Insurance cover if Airline ceases posted by swt on Tuesday, 28. February 2006 at 17:17 Bali Time:
Travel Insurance does not cover: "The failure of any travel agent, tour operator, accommodation provider, airline or other carrier, car rental agency or other travel or tourism provider to provide services or accommodation due to their insolvency or the financial insolvency of any person, company or organisation they deal with."
I got this straight from my travel insurer today. Since 2001, they have not covered insolvency or acts of terrorism.