March 28, 2022

What is Business Travel Insurance?

What is Business Travel Insurance?

Business Travel Insurance, also known as Corporate Travel Insurance, covers employees who are required to travel extensively either overseas or domestically for work related duties.

Some employees need to physically reach out to clients, suppliers, partners, or institutions in order to drive growth and expansion for their company. And in doing so, they are exposed to numerous risks. There is always a chance of them experiencing a medical emergency, getting in an accident, or having to unexpectedly stay at an unplanned location.

Purchasing a Business Travel Insurance policy can be an excellent way to protect employees from unforeseen events. Not only that, it is also influential in attracting and retaining top talent as it showcases the business's ability to take care of the health and wellbeing of all of its employees.

This insurance comes in many forms- some offer trip cancellation coverage, while others cover health expenses. But most companies opt for a comprehensive policy that provides blanket coverage against a wide range of risks.

Anything from loss of baggage, to flight cancellations, and even accidental injuries can derail the whole trip and lead to the loss of a client, delayed production, or interrupted operations. Business Travel Insurance covers the company and its travelling employees against these unexpected events that may end up causing huge financial losses.

This policy generally covers the following :

  • Emergency medical expenses for illnesses or accidents
  • Accidental death, disability, bodily injury or property damage
  • Dental emergency expenses following an accident
  • Loss of passport and checked in baggage
  • Flight delay or trip cancellation
  • Hijack distress benefit
  • Robbery and theft
  • Travel and accommodation expenses incurred due to missed departure/connection
  • Legal liability for injury, property damage or death caused to a third party

Business Travel Insurance does not cover all instances of injury, property damage or loss of passport. Some of its exclusions are :

  • Pre-existing diseases
  • Suicide, attempted suicide, or injuries that are self inflicted
  • Injuries that are caused by willful negligence
  • Involvement in any illegal or criminal activity
  • Loss of passport or baggage due to detention by authorities
  • Loss of passport or other property when no safety measures were taken
  • Mental illnesses

  • A sense of security - Travel Insurance can offer security and protection to the business and its travelling employees. It provides a safety cushion for unexpected events such as sudden hospitalisation, loss of essential belongings or hijacking distress. Some insurers also provide the benefit of evacuation to the home country in the event of a medical crisis
  • Comprehensive coverage - Travel Insurance comprises various covers including a cover for dental expenses, a personal accident cover, as well as a third party liability cover. Depending on the type of policy taken, this insurance can cover expenses regardless of the effect of any other liability or health policy
  • Repatriation of remains - In the event of accidental death of the insured employee in a foreign location, the insurer takes on the responsibility of returning the remains to the family, and bearing the international funeral expenses

Frequent travelling within short periods of time can be incredibly stressful for employees. Corporate Travel Insurance can help provide necessary financial protection should things not turn out as planned. For establishments that have multiple employees (such as sales representatives) that frequently travel for their work duties, insurers also offer a Group Travel Insurance policy. This policy provides comprehensive coverage to all traveling employees under a single plan. The premium for Group Travel Insurance is paid by the company and is relatively cheaper than purchasing several individual plans at the same time.

Businesses can protect their employees in a number of ways. Learn more about Employee Benefits Insurance plans!

Opinions, conclusions and statements of intent expressed in this article are that of the author and Verak does not accept liability for the views expressed unless confirmed by an authorized representative of the Company independently of this communication.