What is Business Travel Insurance?

It’s peace of mind for your company and your staff

When it comes to protecting your travelers and your company, you may be wondering: What is business travel insurance? And, does your company need it?

Simply put — business trip insurance can make all the difference when the going gets tough on the road. A survey by the Global Business Travel Association showed that of 2,000 companies surveyed, more than 300,000 travelers experienced trip disruptions costs in excess of $350 million. In addition, the average cost for medical evacuation for a traveler can exceed $10,000 — even reaching $75,000 from a remote location.

Let’s take a closer look at how your organization can benefit from the right coverage and how to get started in finding the ideal insurance plan.

Business trip insurance: protection against common travel issues

“Business travel insurance is very similar to what you buy when you purchase vacation travel insurance,” explains JoHannah Greene, Client Solutions Manager for Fox World Travel. “Oftentimes when people travel leisurely, they are offered trip protection. The difference on the business side of things is that it’s a little broader than a single trip.”

And that’s key because the stakes are high when it comes to business travel. After all, a company that intends to send staff on an international business trip is making a substantial investment. So, when it’s necessary to cancel those travel plans, including international airfare, hotel stays and more, the company stands to take a loss. With business travel insurance, your company’s investment is protected.

But more than that, business travel insurance is vital for small to mid-sized companies that have not invested in risk management programs, says Greene. That’s because business travel insurance can provide protection for their travelers in the event of an injury, sickness or even a car accident. “Business travel insurance assists in evacuating the traveler or getting them the medical attention they need immediately,” Greene says.  “And with that, Travel Managers have peace of mind that they are taking care of their travelers.”

In extreme situations, business trip insurance offers a level of protection for employees going into areas of civil unrest or when Mother Nature’s wrath interferes with travel plans. Or, it may simply ensure a traveler won’t be saddled with out-of-pocket expenses if they sustain a minor injury while on the road. In fact, Greene points out, the most common issues requiring business trip insurance are medical issues and trip cancellation.

Business trip insurance also assists travelers with some common travel annoyances. For example, when the traveler’s baggage is lost in transit, or their laptop, purse or briefcase is stolen, business travel insurance offers an extra level of protection.

 

Understanding the risks associated with business travel and insufficient coverage

Protecting your people and the company’s investment is paramount, but business travel insurance also mitigates other, more nebulous risks to the company. In particular, having sufficient coverage for any travel issues protects your brand. Bad press, social media backlash and negative word of mouth can do significant damage to a company if travelers feel they were not protected by their company.

What’s more, with appropriate business travel insurance, your company is protected from the possible legal action and damaging public relations that can stem from insufficient insurance protection.

Getting the entire company involved

Maybe you believe your company is already covered against these potential issues. But Greene points out it’s important to be certain. “I don’t think it’s ever something that a company neglects purposely,” she says. “I think it’s one of those situations where someone thinks someone else did it, and no one did. They hear the word, ‘insurance’ and they think, ‘we have insurance.’” The question to ask is ‘do we have the right insurance?’

When examining your business travel insurance needs as an organization, it’s essential to get people involved at every level of the company. “It’s a companywide responsibility.  It doesn’t rest with the travel department or the travel managers alone. You have to gain involvement at every level,” Greene says.

Finding the right business travel insurance for your company

Now that you know the importance of business trip insurance and how it can protect your employees and your company, you want to find coverage that meets your organization’s unique needs. A travel management company, like Fox World Travel, can be a tremendous resource for navigating the choices in the marketplace.

“We work really closely with our customers to find providers and policies that match their business travel insurance needs,” Greene says.

It’s important to note that business travel insurance policies vary. Finding the right insurance policy involves reading the materials that the insurance company provides and tapping the expertise of in-house insurance expert needs.

Travel Managers should be on the lookout for signs that the insurance company isn’t the right fit. “Your travel management company can help you understand the full scope of offerings from what the policy does and does not cover, what your deductible is and even whether the company is legitimate,” Greene says.

Duty of care and risk management: A company’s responsibility

For companies of all sizes, including small to mid-size companies, Greene stresses the importance of having a risk management/duty of care program in place as a part of your company’s overall effort to protect its interests and its staff. The experts at Fox World Travel can help you through the process, every step of the way.

“We’re suggesting these things because it’s our responsibility, and we’re passionate about it,” Greene says. “We see the need, and we want to make sure our customers are protecting themselves and their travelers.”

In the end, putting a duty of care program in place and selecting the right business trip insurance for your company is just good business. As a Travel Manager, you can help your organization understand the importance of being covered, and assure travelers they’ll be cared for when they hit the road.


Leave a Reply

Your email address will not be published. Required fields are marked *