Travel insurance for business is sometimes viewed as a “nice to have” rather than a “need to have.” However, if an insured business traveler experiences a weather interruption, evacuation, illness or a serious accident abroad, they can realize the value of travel insurance in spades – and recuperate thousands of dollars in unexpected expenses.
Unexpected issues can arise whenever someone is traveling for work, especially internationally. If workers from your company regularly travel to attend meetings or special events, travel insurance is a worthwhile investment that offers peace of mind and protects your bottom line in the long term.
How does business travel insurance work?
Business travelers frequently experience unforeseen situations and unexpected costs, such as lost luggage, damaged equipment, the need to evacuate due to an incoming hurricane or medical expenses because of an illness or an accident. Travel insurance will cover many of the expenses incurred in these situations.
Travel insurance is usually purchased when booking a trip or a few weeks prior to the departure date. However, an annual policy is the best option for those who travel frequently.
Why is business travel insurance essential?
There are clear benefits for businesses that invest in travel insurance:
Mitigates financial losses: Even just one incident during a trip can result in a major bill for a business. For example, a business will lose money if a worker must stay abroad for longer than expected due to a weather event. Travel insurance reduces the burden by covering many of the expenses associated with such incidents.
Enables cost predictability: While a travel insurance policy may increase the cost of traveling, the cost is paid upfront. This makes the additional expense easier to plan for, especially when a company with “frequent fliers” takes out an annual policy and builds it into the yearly budget. Overall, travel insurance is a much more budget-friendly option than waiting for an emergency to happen and footing the bill later.
Promotes flexibility in planning: Most business travel insurance policies include cancellation coverage. This means that the business trip can be refunded if a conference or event is canceled ahead of the departure date.
Safeguards workers: Most travel insurance policies will cover medical care due to illness or an accident, as well as the costs associated with an emergency evacuation. This coverage protects your workers as they travel.
Offers peace of mind: Business travel becomes more comfortable and productive when you can account for the unexpected. Even if nothing serious happens, which is always the hope, an insurance policy lets you and your workers travel with much needed peace of mind.
What does business travel insurance usually cover?
The scope of coverage for business travel insurance will vary by plan and provider, with some being more comprehensive than others. The main categories usually include:
Cancellations: Most plans will refund trips if a cancellation is made within a specified time period and for a valid reason, as outlined in the policy agreement. For example, the business won’t have to worry about airfare or accommodation expenses if an earthquake or other natural disaster strikes the anticipated destination ahead of the departure.
Medical Expenses: Medical costs while traveling can be quite hefty, especially when someone is abroad and they do not have healthcare coverage in the country. If a worker suffers an illness or an accident and requires emergency medical care, the travel insurance policy can be a literal lifesaver. It may even cover medical evacuations in the event the traveler must be transported to receive medical care.
Travel Interruptions: Interruptions happen all the time when traveling. If a flight is canceled, the worker may need to stay additional nights at a hotel. If luggage is lost, the company will have to replace the workers’ belongings. Many travel insurance policies will cover these additional expenses, making an unpleasant situation a little more bearable.
Equipment: Workers often travel with expensive business equipment, which can be damaged or go missing. This is where travel insurance can come in handy. For example, if the airline loses an expensive piece of equipment, the policy may pay to replace it.
Evacuation or Lockdowns: If a business traveler must evacuate due to a natural disaster, terrorist attack or other emergencies, a travel insurance policy may foot the bill to transport them. The same can be said in the event a business traveler must go into lockdown and stay in a destination longer than expected due to a pandemic or other public health crisis.
Contact us to learn more about how travel insurance can help protect your bottom line and offer peace of mind.