An Air New Zealand flight to Bali was cancelled this morning due to the danger of a volcanic ash cloud in the Denpasar Airport region.
Jetstar has also cancelled several flights out of Australia for the same reason.
The erupting Mount Raung has been affecting flights to the tourist hotspot on and off for the last month.
Chief executive of Southern Cross Travel Insurance, Craig Morrison, advised travellers to keep all their receipts.
"Document everything, document what your airline tells you, the airlines have an obligation to eventually get you to your destination if you're stuck there.
"For those people who are still looking to go somewhere on vacation, I'd suggest thinking of an alternative other than to Bali."
Mr Morrison said people should talk to their airline before they contact their travel insurance company.