Business travel insurance (otherwise known as corporate travel insurance) is an important investment for both employers and employees because travel can be unpredictable, despite meticulous planning – especially if you constantly hop on a plane for work-related trips, or regularly send a few of your brightest interstate or overseas to push company growth. This type of cover can safeguard your business against the likes of delayed or cancelled flights, ill or injured staff, and lost or stolen luggage.
How does business travel insurance work?
Business travel insurance offers an additional level of coverage on top of standard travel insurance policies for both domestic and international trips. Types of policies available include:
Many business insurance policies include leisure travel cover for directors and nominated executives, as well as their accompanying spouses and dependent children. This can be limited to directors and nominated executives. These will also have a cap on trip length, with some providers allowing a maximum of 45 days.
What does business travel insurance cover?
Business travel insurance policies typically offer the same levels of coverage as standard travel insurance policies, with a few additions. You can be typically covered for:
- Replacement employees required to complete an assignment.
- Corporate travellers family care, including cover for the accidental death to the insured’s spouse if they pass away while travelling.
- Business equipment and personal belongings essential for your trip, including laptops, tablets, and smart phones. Extended policies can cover documents and business samples.
- Personal baggage, including your luggage and valuables
- Replacement colleague cover if you are unable to attend a meeting or event
- Resumption of assignment expenses. This means the insurance provider will cover the costs of an insured employee resuming their assignment if they were repatriated from suffering the events outlined in their policy
- Medical treatment abroad
- Cover if your trip is cancelled or curtailed due to unforeseen circumstances or circumstances out of your control
- Missed flights, including both outbound or homebound
- Rental car insurance excess
- Lost or stolen business money
- Sports equipment cover.
Any injury, loss, or damage relating to your profession won’t be covered in some business travel insurance policies. If an employee suffers bodily injury, sickness, or accidental death, some insurers will offer compensation to the employer (or policyholder) if they are found payable under any worker’s compensation legislation. This is known as extra territorial workers compensation, and is typically only available when an employee is carrying out their duties on a temporary basis away from their state or territory where they are employed.
As always, check your policy’s Product Disclosure Statement (PDS) to know what is included in your cover. If you’re taking out a group policy, ensure each traveller has also read the PDS.
What isn’t covered by business travel insurance?
There are some limits both you and other insured workers should be aware of before travel commences. Claims resulting from the following are often excluded:
- Pre-existing medical conditions
- Travelling against a doctor’s advice
- Alcohol or drug-related claims
- Illegal or criminal acts
- Any change of travel plans that aren’t due to unforeseen circumstances
- Travelling to countries or regions where there is a travel warning. Travel advice can be found on Smartraveller.
- Expenses incurred that should have been included in the company’s travel budget.
What else should you consider when purchasing business travel insurance?