The recent declarations of bankruptcy by Aloha, ATA, and Skybus Airlines have compounded the troubles plaguing today's travel industry and have created enormous anxiety among travelers as well. Travel insurance which protects against such things as travel suppliers going bankrupt can ease consumers' concerns and mitigate travel risks reports InsureMyTrip.com, the leading online provider of travel insurance.

"The financial prudence of purchasing insurance to protect all of your leisure and business trip investments could not be more apparent than in today's troubled economic environment," says Jim Grace, President and CEO of InsureMyTrip.com. "It only takes one bad travel experience for a person to understand that trip insurance is not a luxury, it's a necessity," explains Grace, "but it's also extremely important to understand some of the fundamental facts and particulars of travel insurance."

First and foremost, it is always best to purchase your travel insurance protection from a third-party source. Typically, if you purchase travel insurance directly through a travel supplier such as an airline, cruise line, or tour operator, you cannot protect yourself should that travel supplier go bankrupt or become financially insolvent. "There's a great deal of confusion in this area," says Grace. "I have seen several articles lately in which consumers were surprised to learn that the travel insurance policy they purchased directly through the airline did not provide any protective coverage when the airline declared bankruptcy and ceased operations. Whether it's a cruise line, tour operator, or airline, had the insurance been purchased from a third-party source originally, these travelers would have been covered."

Timing is also important as travel insurance, like all insurance, is predicated on the occurrence of unforeseen events. Most of the major U.S. travel insurers provide financial default/bankruptcy protection if you purchase your travel insurance plan within 7 to 21 days (varies by company and plan) of your initial trip deposit. Although some travel insurers will provide coverage for suppliers that have declared bankruptcy but continue to operate, once a company ceases operations it becomes a foreseen event and insurance can no longer be purchased.

"The best thing that travel insurance consumers can do right now is to know their options," advises Grace. InsureMyTrip.com allows consumers to review, rate, compare, analyze and purchase travel insurance from all the leading U.S. travel insurance companies in a completely secure environment. To learn more about the protection plans that best suit your travel investment needs, visit http://www.insuremytrip.com on-line or call (800) 487-4722 to speak with a licensed travel insurance professional. Whether you simply need one question answered or want step-by-step help in selecting a travel insurance policy, InsureMyTrip's professional Customer Care representatives are waiting for your call.