The recent mechanical failure of the Carnival cruise ship Splendor has led to the ship being out of commission for at least the rest of 2010. This means the upcoming cruises on the Splendor have been cancelled. Travel insurance can help travelers in this type of situation, but will depend on what compensation is provided from the cruise line. The following is from USA Today about the future cruise cancellations.
Carnival has offered passengers on the canceled sailings a 25% discount on a future cruise in addition to a full refund of the canceled voyage.
The travelers were refunded the full cost of the cruise by Carnival, which means a trip cancellation claim would not reimburse that expense. However, travel insurance could cover other travel expenses of the trip not refunded by Carnival, such as lodging, flights or tours. Always refer to the certificate of insurance for details.