The most common risks that are covered by travel insurance are:
1. Medical expenses
Some medical expenses are not covered though but travel insurance will cover some common medical expenses such as a flu illness or stomach virus but not pre-existing chronic diseases such as tuberculosis or the like.
2. Emergency evacuation/repatriation
These are considered events that are not controlled. This means that insurances will cover this since it is something a customer can control. This is good to have when the unexpected happens in a foreign country such as a war or a natural disaster.
3. Overseas funeral expenses
In the event of unfortunate loss, having this feature comes in handy as it is hard to lose someone while traveling and to pay for it would be even worse.
4. Accidental death, injury or disablement benefit
These events that are caused by unfortunate chance are commonly covered by insurances, which is great.
In the event a plane is canceled or a hotel unfortunately cancels your reservation it is good that travel insurance will cover you so you won't have to worry about where you're going to stay.
7. Delayed departure
8. Loss, theft or damage to personal possessions and money (including travel documents)
9. Delayed baggage (and emergency replacement of essential items)
10. Legal assistance
11. Personal liability and rental car damage excess
This is also great to know that travel insurance covers. If for some reason you are in an accident it is good to not only have automobile insurance if you are wise to get it but to also have travel insurance that will also cover you for an excessive loss, meaning a car that is a complete loss.
Some travel policies will also provide cover for additional costs, although these vary widely between providers.
Justin Hopley has traveled around a bit, and knows the importance of travel insurance, you can find great information on his Travel insurance website.