Yes, flyBe are selling at £7 per per person insurance that covers board and lodging and travel expenses up to ,I think, 150 quid per day up to a maximum of a grand.
Clever really - perhaps a bit sneaky - because by law they have to cover "reasonable" board and lodging anyway.
What the airline is saying is..
"If you don't pay this £7 you'll have to wait ages to get your money back in case you're stranded , and we'll probably argue what's reasonable; so just pay seven quid now and we'll refund a 150 quid a day no argument"
However, as per OP's question, this insurance does not cover the cost of losses incurred because you cant get a refund from that hotel,cruise,villa etc that one does not book with a tour operator.
As regards suing God -you can't even sue her representative on Earth Mr Pope.
Better to do what i'm doing and work with her rather than sue her.
I am presently arranging with her and, just in case, the Devil an all-risks policy that covers anything those girls do over the next few millenia -there's even an Armageddon pay out.
Details to follow but in the meantime watch out for that asteroid.
(Gosh, am I going to get banned from this site again ?)