The supplier default benefit in travel insurance covers money you lose because of the bankruptcy of an airline, cruise line, tour operator, or other provider of travel services. Some travel insurance companies have eliminated this benefit while others pick and choose which travel suppliers they will and/or will not insure. The bankruptcy must be “unforeseen” and usually has a waiting period from the time of purchase. Some policies only provide coverage in the event you have purchased the travel arrangements through a third party and not directly from the supplier. Always read the fine print for any conditions which apply.