World Vacation Network No Refund - and can't stay at resort Carlsbad California

I purchased travel along with travel protection, I was told I could cancel the trip with the travel protection.  This was a company trip and the company was nto picking up the hotel expense.  I purchased insurance i case things changed, the company changed its policy and would pay for the trip.

I went online and canceled the trip, I recieved my credit card statement and there was no credit for the hotel booked.  I called World Vacation Travel and was told that no refund, in that case I will want to keep my stay for the week.  They told me I can not stay and that I can;t get a refund. 

WHAT - why did I buy insurance, why did the travel agencey take away my reservation if thsi was the case.