Lost, damaged or stolen luggage. Whatever the case, it can often be expensive to replace the contents in your case.
Missed trip due to illness of injury. If someone on the trip happens to get sick and you have to cancel or leave early, you could lose the full cost of the trip. Without insurance, in many cases it will be hard to get reimbursement.
Work gets in the way. Work can get in the way more often then we'd like to admit. Having the right travel insurance is a way to protect your trip if you have to reschedule for a work-related reason.
Hospital cover. Health insurance usually will not apply in a foreign country when you are traveling. And this cost can add up depending on where you have travelled to! The right travel insurance can help cover you if disaster strikes.
Emergency airlifts. For more adventurous trips you may need to think about travel insurance for emergency cover. For example, if you need to be flown to airlifted from danger, helicopter transport can be a substantial cost that the right travel insurance may cover.