Here is where private travel insurance can help, said Kathryn Ward, an attorney with DLA Piper in London who specializes in aviation insurance and litigation.

“The number of people who travel with no travel insurance is staggering,” she said. “It’s not for the small things, but the big stuff.”

Insurance is not a fail safe and policies need to be carefully read, but costs like extending accommodations when flights have been canceled and of booking a return flight are usually covered by these plans. Booking a trip using a credit card can also help, allowing travelers to dispute the charges for services not delivered.

The situation is not much different in Canada, which enacted a new air traveler protection program two months ago to deal with flight delays, denied boarding and lost baggage issues. By the end of this year, Canadians will also be able to collect fees of up to $1,000 for flight disruptions, but again, the law does not address passengers holding tickets on airlines that no longer exist. Some provinces in Canada have created industry-funded compensation programs for travelers based on the location of the air or cruise line, but these programs are not nationwide.

When the Icelandic low-cost carrier, WOW Air, went out of business earlier this year, Canadian authorities wondered whether travelers would need to dip into a provincial repatriation fund to come home. Iceland picked up the tab.

In Europe, consumer rights are well established in many commercial transactions, including air travel, Ms. Ward said.

“The legislation has evolved to respond to the fact that passengers are more demanding and get more upset when things go wrong than they previously did,” she said. “Consumer protection is much stronger and in favor of the passenger here than it is in the U.S. and elsewhere in the world.”