Travel insurance: what you need to know

The entire travel industry is experiencing a post-pandemic surge, and business-related travel is no exception. Global business travel spending is expected to grow 47% year-on-year in 2022 and 32% by the end of 2023, according to the Global Business Travel Association (GBTA). By 2027, it could become a $1.8 trillion industry.

With so much money spent on travel expenses, travelers need to understand how business travel insurance works. This is especially true as business travel and leisure travel (or “bleisure” for short) are increasingly merging thanks to flexible work arrangements. Expedia’s 2023 Traveler Value Index reports that 76% of business travelers plan to extend their business trips for leisure purposes. But that also means your company’s coverage may not cover your entire trip.

Whether you’re traveling as an employee or a small business owner, how to best prepare for your trip so you don’t end up with a big bill due to unexpected events like flight cancellations or medical emergencies. Please find.

What is business travel insurance?

Travel business insurance covers certain events that may cause financial loss to covered individuals during work-related travel. Details will vary depending on your specific business travel insurance plan. If you are a small business owner, here are some of the coverage options you should consider when comparing insurance.

• Trip cancellation or interruption compensation
• Connection support failed
• Lost baggage compensation
• Medical expense compensation

If you’re an employee who frequently travels for work, it’s best to check what benefits your company’s insurance policy offers. In most cases, the travel insurance you usually buy for things like vacations will also cover business trips.

Who needs travel insurance?

Travel business insurance is important if you’re leaving town (or the countryside) for work or your own business.

corporate traveler

Large companies with large numbers of employees may have business travel insurance in place for employee travel.

“Typically there are global travel managers with relationships with various airlines and hotels who manage travellers’ itineraries, reservations and expenses,” says Co-Founder of FootPrintID, a portable personal health records platform. said Beth Tofel, President and CEO. Emergency medical assistance may also be included in the policy. ”

While this provides some peace of mind for corporate travelers, it does not mean comprehensive cover will automatically apply.

Please contact your travel manager or human resources representative for more information about your insurance policy, especially other than trip cancellation or interruption coverage. You should also check whether your insurance covers any expenses that may affect you personally, such as lost luggage or medical expenses.

If you are extending your trip for personal purposes, you may want to consider purchasing additional personal coverage if your work policy does not cover you beyond the number of scheduled meetings or events to your destination. Most plans are designed to be purchased before your trip, but there are also options that can be purchased during your trip. There is nothing wrong with insurance companies selling insurance to people who are already traveling, as long as the trip is paid in full.

small business owner

If you need personal travel insurance, look online for a policy that fits your specific needs. For example, if you’re bringing your spouse and children, you may need a family plan. If you travel frequently, you may benefit from a multi-trip policy that covers multiple trips within a certain period of time.

Small business owners are responsible for sourcing and vetting business travel insurance policies. Also, canceled trips directly affect your own bottom line, so you have to pay more money.

There are many different types of coverage available, but perhaps the most important for small business owners is Cancellation for Any Cause (CFAR).

“Cancellation for any reason is an important part of having a travel insurance policy, as natural disasters, illness and other risk factors are on the rise,” Tofel said.

It differs from a standard trip cancellation policy as there are no provisions regarding what types of emergencies are covered. For typical trip cancellation policies, qualifying events are usually limited to a death in the family or a sudden natural disaster. However, when you obtain CFAR coverage, it covers the costs for cancellation reasons not already covered by your insurance policy.

What does travel insurance cover?

Each policy is different. Below are six different types of coverage. To find the best insurance for your next business trip, consider which one fits your needs.

trip cancellation insurance

This coverage provides compensation to you or your company if you are unable to travel. Some policies list eligibility reasons and timelines. For example, an emergency may need to occur within a certain number of days from your departure date to receive a refund.

travel delay insurance

This compensates you or your company for travel delays and new expenses due to covered delays, such as a major weather event preventing you from reaching the next leg of your trip. Refunds may include travel expenses that could not be used or new reservations that had to be made.

trip interruption insurance

If you have to leave your business trip early due to a covered event such as illness, this coverage will reimburse you for non-refundable or prepaid expenses.

baggage insurance

This policy add-on allows you to file a claim if your baggage is lost or stolen during your trip. In addition to exchanging items, you may also be partially or fully reimbursed for the costs associated with exchanging items during your trip. Airlines may provide initial coverage, but additional insurance can also protect you beyond the airline’s maximum amount.

Business trip accident insurance

Insurance coverage may vary depending on the risks of your destination, especially if there are political tensions at the time. Potential coverage includes accidental death or dismemberment, and medical expenses resulting from an accident. Depending on the policy and circumstances, legal support and psychological counseling may also be included.

Medical expense compensation

Some medical expenses while traveling domestically may be covered by your health insurance company as out-of-network expenses, but many business travel insurance plans also include some medical expense coverage. Personal health insurance plans typically do not cover medical events outside the country, so if you travel abroad, you may need extended coverage.

Tofel recommends checking your company policy to see what types of medical events are covered. “You should check carefully what your medical insurance is or whether you will need to take out an additional health insurance plan to cover your travel destination.” This advice is useful for small business owners. This also applies to people.

What are the benefits of travel insurance?

Business travel insurance provides peace of mind for individual travelers as well as businesses of all sizes. Here are some of the key benefits that comprehensive coverage provides.

• Protect key aspects of your trip. From travel changes to lost luggage to unexpected medical bills, a variety of issues can arise during a business trip. Travel insurance can help reduce your out-of-pocket costs if something goes wrong.
• Reduce costs with Group Policy: Depending on the number of employees on your travel policy, you can reduce costs. If you own a small business, consider extending coverage as a benefit to all your employees. You could potentially save money in the long run.

Comparison of business travel insurance and other travel insurance

Some business credit cards offer some level of travel insurance, including rental car coverage and lost baggage. However, the problem with using these benefits on business trips is that you have to purchase the trip with a credit card. Therefore, if you book through a corporate travel portal or business credit card, your personal credit card insurance will not cover you.

When you book travel with a business credit card, you may receive benefits such as rental car collision damage waivers and travel assistance services. However, these cards typically do not offer the level of coverage of standard travel insurance.

When purchasing standalone travel insurance for personal travel, you typically have the same options as business travel insurance. However, you may be less likely to want to pay for additional coverage, such as trip interruption or cancellation for any reason. It’s important to weigh the pros and cons of each policy add-on to see if it’s worth the cost.