DFAT issues Indonesia travel warning, citing terrorist threat - ABC News (Australian Broadcasting Corporation)

Ms Bishop said she would feel comfortable holidaying in Bali now, but that travellers should take out insurance.

But will you have any actual errrmmm.....cover....?

Terrorism and Travel Insurance

....Most travel insurers now exclude terrorism with a clause that will probably go something like this in their General Exclusions (exclusions which affect all the sections of a policy);

You are not covered for anything caused directly or indirectly by the following:

Any consequence whether direct or indirect of war, invasion, act of foreign enemy, hostilities (whether war be declared or not), discharge, explosion or use of a weapon of mass destruction whether or not employing nuclear fission or fusion, or chemical, biological, radioactive or similar agents, by any party at any time for any reason, terrorist activity, civil war, rebellion, revolution, insurrection, blockade, military or usurped power.