You are not usually required to take out travel or holiday insurance by your tour operator, but it is highly recommended, whether you are taking a trip abroad or in the UK.
Travel insurance can be purchased from your tour operator or a private company and will usually offer coverage of emergencies such as illness, baggage loss, accidental death/dismemberment and cancellation.
Cover normally includes:
Insurance companies usually offer different types of cover, from a basic package to extensive cover. The travel insurance cover you require will depend on a number of factors such as where you are going, cost of valuables etc., and activities you intend to be involved in. Make sure the policy covers all you want it to, particularly if you are going on a specialist holiday where risks may be higher, e.g. skiing, scuba diving (which are often referred to as extreme activities).
If you are going on a one off holiday you will probably be best arranging single trip insurance. However, if you travel frequently for business or pleasure, you should consider a longer term policy, e.g. 3 months or a year (usually referred to as multi trip insurance), as this will generally work out cheaper than a number of separate policies.
As with other types of insurance, you will need to shop around to get budget prices.
For further information visit What does travel insurance cover? and Where can I buy cheap travel insurance?