From This is Money:
Insurers are braced for a raft of claims for refunds on flights and compensation for delayed luggage caught up in the backlog of 20,000 bags.
All travel policies provide cover for delays at the airport, cancellations and lost luggage, but monetary limits and deadlines vary.
You are entitled to £20 per person, typically after 12 hours’ delay, to pay for refreshments. You’ll need written confirmation from BA, giving the length of the delay and reasons for it.
Airlines have to provide food and drink, overnight accommodation and two free phone calls, e-mails or faxes, too, depending on the length of delay.
Check how long you need to wait before you can cancel your trip altogether and recover the cost. At More Than, for instance, you can cancel after a delay of more than 24 hours. You are covered for the cost of your flight, hotel, car hire and any other expenses you’ve paid.
Compensation from BA for cancellation ranges from £100 to £480 under EU rules.