OMG thanks so much for the advice!!!!
I have rang them, apparently if we fully cancel it's $150 to re-deposit the miles!
If we keep the booking 'suspended' and re-book the same route on another date then there is no charge and the miles stay suspended. All I need to do is ring back with a date that I want to fly that route!!
Just need to tie it up with the outgoing with my Avios miles (which BA refunded immediately) and when I'm mobile again.
No need to get Travel Insurance company involved now! Phew!!!
Thanks Again!!