Travel insurance is essential for business trips

You might imagine that business trips have a lower level of risk than your average leisure trip, and you’re probably right. Business travellers are less likely to go hang-gliding or horse-riding, but there are still risks that you’ll need to consider. Your travellers won’t have the luxury of Medicare or their private health insurance overseas. So, it’s imperative that you keep them protected and safe.

Does travel insurance for businesses cover all destinations?

You'll be happier if the annual business travel insurance policy includes multiple trips. This policy covers your business trip throughout the year, but you must check the maximum duration of travel to cover each trip.

Corporate travel insurance policies don’t automatically cover every destination. Coverage often depends on the travel warnings issued for specific countries, which can change based on the situation. Keeping up with the latest updates from the Department of Foreign Affairs and Trade or Smartraveller is crucial to ensure your policy remains valid and comprehensive.

Additionally, ensuring that your company's travel insurance includes provisions for trip cancellations and other unforeseen incidents is essential to safeguarding your business travel investments. 
 

International travel insurance

Your business traveller may be just as likely to be hit by a car crossing the street in Sydney CBD, as they are in New York. The major difference is healthcare, and potentially hundreds of thousands of dollars. The USA isn’t the only country with expensive healthcare. According to Finder, a one-night stay in a hospital in the USA costs around $2,260 per day. The UK follows at $1,515 per day, and Singapore is close behind at $1,412 per day (ouch!). Other countries like Japan also have high healthcare costs, averaging $1,145 per day

MEDICAL CLAIM: A Cover-More Travel Insurance customer on a business trip was in a head on car accident in Yosemite National Park, USA. The customer was hospitalised for internal injuries and a fractured spine requiring surgery. They were in hospital for over 4 weeks before being able to be brought home. The claim cost was approximately $570,000. 

It’s not just about the healthcare costs though. Travel insurance can provide cover for events like luggage loss or delay, money, travel documents, kidnap and ransom, loss of income, and more.

CANCELLATION CLAIM: One Cover-More business customer had to cancel their trip due to a Transient Ischaemic Attack (stroke-like attack). The claim cost was approximately $47,000.

LUGGAGE CLAIM: Another business customer was in Germany about to depart home when their bag was lost from their hotel. They attempted to recover the lost luggage, however it couldn’t be found. The claim cost was approximately $5,500.

Domestic travel insurance

While your Australian employees will have the luxury of Medicare when travelling domestically, there are still risks to factor in. Imagine if your traveller is suddenly unable to travel due to an ill family member, or if they lost their luggage and the clothes they need for a business presentation on their trip.

CANCELLATION CLAIM: A Cover-More corporate customer cancelled their trip due to a spontaneous subarachnoid haemorrhage which required hospitalisation and investigation. The claim cost was approximately $20,000.

LUGGAGE CLAIM: A business customer was driving from Brisbane to Adelaide via the Flinders ranges. They were towing a camper trailer carrying their possessions. A truck driver flagged them down to get them to pull over and they noticed flames coming from under the vehicle. The vehicle subsequently caught fire (including the trailer) and they lost everything. The claim cost was approximately $13,500.

Travel insurance for business – what isn’t covered

There are a range of things that travel insurance cannot cover. Some are due to high-risk, and some are due to legal requirements. For example, did you know that by Australian law, travel insurance companies aren’t able to provide medical cover for domestic trips, unless you’re on a cruise? Here are some important exclusions to keep in mind.

Pregnancy

Travel insurance companies don’t cover childbirth or any childbirth-related expenses. Why? Well giving birth overseas can be a costly process. Plus if someone is travelling late in their pregnancy, then there’s certainly a higher chance of needing to give birth overseas.

If your business traveller is pregnant, make sure you check your policy for restrictions on the gestational period to see if they’re covered on their trip.

Alcohol-related incidents

Even if your business traveller is taking clients out for drinks, they’ll still need to be careful. Generally, travel insurance providers won’t pay out claims where intoxication was a factor. What does that mean? Well, if your employee is intoxicated and decides to jaywalk across the road and ends up being hit by a car, it’s likely they won’t be covered as their intoxication contributed to a high-risk decision.

Reasonable care

If your traveller hasn’t taken reasonable care and was negligent, then any claims directly or indirectly as a result of that behaviour won’t be covered. This can include claims for loss, theft or damage to property, or death, illness or bodily injury. What is reasonable care? Here’s where it gets a little unclear as it will vary from situation to situation, and from claim to claim. Let’s say for example your traveller wanted to go to the bathroom at the airport but didn’t want to take their luggage with them. If they left it outside, unattended and out of their line of sight then it would be considered that they didn’t take reasonable care. If they’re out for lunch and decide to leave their wallet unattended on the table while they ask the waitstaff a question across the room, that’s not reasonable care.

Make sure you and your travellers check the General Exclusions list and read the Product Disclosure Statement for your policy. That information could save your business thousands of dollars.