Booking Travel in 2021? Here’s How to Protect Your Investment

“If you put the purchase on a credit card and someone goes under, there’s a good chance you can recover it,” Mr. Kelly said.

Some credit cards, including the Chase Sapphire Reserve, which costs $550 annually, and the less expensive Chase Sapphire Preferred at $95 a year, also offer extensive travel protections, including benefits that cover trip cancellation, delays, interruptions and lost and damaged bags. In general, the more expensive the card, the more generous the benefits.

“The onus is on the consumer in all credit card insurance cases to prove anything,” said Leigh Rowan, the director of special projects at UpgradedPoints.com. “If you really want insurance coverage, private insurance coverage is often easier to deal with.”

Some travel insurance policies will provide cancellation coverage for the financial default of a travel supplier, like a cruise line or tour company, but not a travel agency, according to Stan Sandberg, a co-founder of the comparison website Travelinsurance.com.

If you’re concerned your travel provider is in financial trouble, call your insurer and ask if it’s on an exclusion list.

“If it’s well-known that a travel supplier is financially challenged it may already be excluded from the coverage,” Mr. Sandberg said.

More than ever, you’ll need to do your homework to find the right policy, particularly one that covers Covid-19.