Introduction - a travel insurance policy may vary from insurer to insurer so you should satisfy yourself that the contract you are being offered suits your needs. Point out exactly the purpose of your trip, is it business or pleasure and remember to check if you are carrying out any hazardous activities as defined on the insurers list.  Your Travel policy will come in a number of sections, some will be compulsory, some you can choose as extras. In some cases you can exclude sections to obtain a discount. Whatever you decide, it is a good idea to make sure that you have a comprehensive medical expenses section as this is where large claims can arise. 

A good travel insurance policy will usually include the following sections; wordings and levels of cover clearly vary from one Travel Insurance company to another.  It is worth bearing in mind that the sums insured provided by your Travel Insurance policy will normally be per person insured. So if 4 persons are covered by your Travel Insurance policy then the sum insured for curtailment etc will be 4X the sum stated.  Also always read the policy wording whilst cover is provided, there will be terms & conditions, the majority of unpaid claims occur because policyholders do not read or understand the terms & conditions of their policy fully.  To give you a rough idea, the main sections are typically:-

Personal Accident	Up to £20,000 cover is usually provided by this section if you suffer accidental bodily injury on your holiday or journey and up to £10,000 following death.
Medical & Emergency Expenses	Medical expenses and additional accommodation and travel costs incurred by you (and a relative or friend required to travel or remain with you) as a result of your injury or illness occurring during your trip. This cover is normally up to £10,000,000 and should include repatriation cover.
Additional Hospital Benefit	£15.00 for each complete 24 hours in a hospital abroad & up to £600 in total is a fairly typical sum insured.
Loss of Deposit or Cancellation	Contracted travel & accommodation costs up to usually £3000 if you have to cancel your trip due to a reason specified in your policy. This cover will usually start as soon as you incept cover.
Curtailment	The proportional costs of your trip up to £3000 if you need to curtail your trip and return to the UK due to a reason specified in the policy.
Delayed Departure	The following amounts are fairly typical A) £ 30.00 for the first 12 hour period and £15.00 for each subsequent 12 hour period up to £200 in total if your departure is delayed. B)  Contracted travel & accommodation costs if you elect to abandon your trip after 12 hours delay due to a reason specified in the policy up to £3000 each insured person.
Personal Luggage including Money & Valuables	Reimbursement up to £2000 if your personal belongings are stolen lost or damaged is a fairly typical level of cover.
Delayed Personal Luggage	Purchase of essential items up to £100 if your luggage is lost for more than 12 hours on your outward journey. Cover is not normally provided on the inward part of the journey.
Missed Departure	Travel & Accommodation expenses are up to £400 for Europe or £800 worldwide, if you are prevented from reaching the UK departure point due to a reason specified in the policy. These are fairly typical sums insured.
Loss of Passport	Travel & Accommodation expenses, usually up to £500 if your British Passport is lost or stolen during your trip.
Personal Liability	Amounts for which you are personally liable due to accidental injury or property damage up to £2,000,000.
Legal Expenses	Costs incurred to pursue a claim for compensation if you sustain an injury up to £50,000.
Ski Pack Cover	Proportional costs if because of illness you are unable to recover lift pass or hired equipment charges
Ski Hire	Up to £15.00 per person per day for ski hire if your own skis are stolen or damaged Maximum amount £250.00 is a fairly typical amount