No recompense if you cannot actually make it to BookedFlight2 -- the insurance cover is to get you to connect *successfully*. If no connection is possible then you miss BookedFlight2. There's no implied compensation for the actual flight/arrangement itself.
People expect Section 1 (cancellation beyond your control) to apply when BookedFlight1 fails, but the exclusions usually rule out everything which is the responsibility of the first carrier (delay, cancellation, etc). And as that carrier is only obliged to get you to the first destination at some point in the next century (or refund your money), that's it. Meanwhile, the travel delay expenses clauses vary a lot in what they will cover, but whatever the situation, won't solve your problem of the lost second booked flight.