We recommend you protect yourself with travel insurance, in the even that you cannot fulfill your reservation with us. We book far in advance, turning many people away once we have received your deposit/payment. And we NEVER cancel!
Travel insurance is inexpensive and protects much more than merely your lodging payment—it can cover cancelled flights, lost luggage, etc.. These guys are recommended by Lonely Planet: www.worldnomads.com.
They also do wonderful things for children and families around the world. Check out their Footprints program.