Travel insurance can also be defined as a legal transfer of any risk of potential loss related to traveling. While this is the more technical definition, it is true in that travel insurance does eliminate any financial risk from the insured party in return of a fee.
Some of the common risks that should be covered under any good travel insurance policy are as follows:
Travel cancellations, delayed departures, losses, theft or damage of personal possessions, medical expenses, emergency return or repatriation, accidental death, rental car damage or any sort of legal assistance related to traveling. Different companies may provide different coverage facilities under their own insurance and the exact policies will vary.
There are other types of travel insurance which expressly cover things like high risk sports, traveling to high-risk countries and protection against terrorism, chronic diseases and more.