If your company requires employee travel, you have a “duty of care” to keep them safe and provide the care they need if their safety is compromised. Your company pays your employees’ travel expenses and any financial losses and medical and other expenses your employees may incur while they are on the road. For instance, a survey showed that 12 % of travellers encounter natural disasters that impact their trips. Purchasing business travel insurance may mitigate some or all of these costs.
Business Travel Coverage
This type of insurance has two purposes: protect your employees during their business travel and reduce your trip investment risks. Although most corporate travel insurance plans focus on cancelled trips, medical and other emergencies, accidents that result in loss of life or disability, and loss of personal items such as baggage, this type of insurance can also be customised. For example, you may add international coverage for employees who travel overseas frequently.
In addition, your company may receive reimbursements for delayed or cancelled events, including venue and catering deposits. You and your employees may be protected against identity theft, and your travel-related legal fees should also be covered. You may purchase coverage for lost equipment and technology, especially if you are concerned about security or natural disasters that require evacuations.
Up to 50 % of travellers may experience medical issues when travelling. Therefore, your coverage may also include pre-existing conditions and transportation back into your nation during a medical emergency. Ultimately, this insurance is a hedge against any costly incident your employees face when they are out of the office on business.
Travel Insurance Costs
In your company’s travel risk mitigation strategy, identify any travel risks, such as those inherent in specific destinations or travel frequency, to reduce your company’s insurance costs and risks. Your travel manager should also evaluate your company’s past claims and current policy to ensure you are covered and the cost is appropriate. Then, you may choose one-trip or annual travel insurance, which typically costs between 5 % and 10 % of your company’s travel expenses. However, your travel insurance will vary in price based on the number of people travelling, how long they will be gone, where they are going and how much the trip costs.
Benefits of Travel Insurance
Your insurance company can reimburse your employees if they have to replace clothing and equipment due to lost or delayed baggage. In addition, these policies help your employees replace their identity documents if they are lost and often pay at least a portion of the replacement costs. The insurance company provides payments when your employees get hurt, become disabled or lose their lives on trips. For loss-of-life claims, transportation of the remains to your home country is also provided.
If you have a business travel insurance policy, you do not have to purchase individual travel policies, even for employees who travel frequently. You should also receive 24-hour assistance, including emergency help and language services, and some policies even offer a concierge.
Before You Purchase Insurance
Your corporate credit card and health insurance may offer some coverage for your travelling employees. For example, a corporate card used to book travel may help with lost baggage, accident, theft and cancellation costs. Therefore, contact these companies to determine their coverages. Then, consider a customised travel insurance plan that protects your company and employees above and beyond what your health insurance and credit cards may cover.
You are responsible for protecting your employees’ health, security and safety during their business activities, including business travel. A business travel policy offers a variety of custom coverages and benefits. As you create your corporate travel strategy, consider all the ways to protect your company and employees while they are out of the office on business.