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What is Business Travel Insurance?
Business Travel Insurance
Business travel insurance, also known as corporate travel insurance is a type of insurance coverage designed to protect individuals who are travelling for business related purposes.
It provides financial protection against a range of risks and emergencies that can occur during work-related trips.
Business travel insurance is usually purchased by employers or business travellers themselves to lessen the financial impact of unexpected events.
This type of insurance is important for companies that rely on business travel to expand their global presence, as it protects them against major financial losses resulting from unexpected issues during trips.
Business travel insurance premiums are influenced by factors such as the traveller’s age, trip duration, and coverage limits, and typically cost about 6% of the total travel costs.
Here are some key features of business travel insurance:
- Trip Cancellation and Interruption: Covers non-refundable trip expenses in case the business trip is cancelled or interrupted due to covered reasons such as illness, injury, or other unforeseen events.
- Emergency Medical Expenses: Provides coverage for medical expenses incurred due to illness or injury that occurs during the business trip. This may include hospital stays, doctor’s fees, and prescription medications.
- Evacuation and Repatriation: Covers the costs of emergency medical evacuation or repatriation to the home country in the event of a serious illness or injury.
- Travel Delay: Reimburses additional expenses incurred due to unexpected travel delays, such as accommodation and meal costs.
- Baggage and Personal Belongings: Provides coverage for lost, stolen, or damaged luggage and business equipment during the trip.
- Business Equipment Coverage: Extends coverage to business-related equipment and devices that are lost, stolen, or damaged during the trip, such as laptops or other work tools.
- Personal Liability: Offers coverage for legal expenses and damages if the business traveller is held liable for causing injury or damage to the property of others during the trip.
- 24/7 Assistance Services: Many business travel insurance policies include assistance services such as travel assistance hotlines, medical advice, and coordination of emergency services.
Business travel insurance is crucial for protecting both the employer and the employee from unexpected expenses and disruptions that can occur while traveling for work.
The coverage and benefits may vary between insurance providers, so it’s important to carefully review the policy terms and conditions to ensure it aligns with the specific needs of the business traveller and the company’s travel policies.
What are the common exclusions in business travel insurance policies?
Common exclusions in business travel insurance policies include:
- Self-inflicted injuries: Travel policies exclude coverage for any injuries caused to the policyholders due to self-harm, including suicide.
- Illegal activities: Losses caused by illegal activities, such as operating a motorcycle or scooter without a valid license, are not covered.
- Medical tourism: Travel insurance typically does not cover medical expenses related to elective procedures or medical tourism, such as a facelift or a tummy tuck.
- Pre-existing conditions: Travel policies generally do not cover pre-existing conditions of the policyholders, if the insurance considers the condition to be high risk and could incur medical costs overseas.
- Engaging in reckless activities/behaviour: Participating in high-risk sports and activities, or engaging in reckless behaviour, may not be covered by travel insurance.
It’s important to carefully review the policy wording to understand the specific exclusions of a business travel insurance policy.
Baggage Travel insurance
Baggage Travel Insurance
Cover for personal baggage is included in all mainstream travel insurance policies, whether they are single trip insurance or annual travel insurance plans.
Some insurance policies that are more specialized such as cruise travel insurance or golf holiday insurance may provide additional or separate types of cover, normally to include additional equipment.
Typically, baggage is covered in the sense of it being normal suitcases that are checked in and out of an airport or train station, as well as carry on luggage.
Cover will normally include loss or damage to the baggage itself, as well as what is inside the baggage such as money and travel documents and other valuables.
It is important to note that there are likely to be specific limits per item within the travel insurance policy as well as limits on specified valuables as well.
There is also an expectation by the insurance company that the individual responsible for the baggage will take all reasonable precautions to make sure it is not left unattended or damaged in such a way that could have been prevented.
The various limits for baggage and specific items will be detailed in the insurance policy document and form the basis of any acceptance or rejection of a subsequent claim.
Baggage Travel Insurance Claim
In the event of baggage being stolen or lost it is important that the local police are notified, and that a police report is issued to you and a copy sent to the insurance company.
The insurance company may also want a written report from your travel provider that details the reported loss.
The insurance company is also likely to want proof of ownership and value of any items that are claimed to have been lost or stolen. This can sometimes be quite a contentious area if items are quite old or to difficult to establish proof of value.
An insurance company will accept something such as a receipt for proof of both ownership and value. In other situations, it might be necessary for the policy holder to have a valuation done before travelling to prove how much something is worth.
It is worth making the point that it is always a good idea to consider if it is really necessary to travel with items of real value or items that are difficult to replace.
If there is a claim for a loss or theft of a smartphone, cell phone or any type of device that has a service provider attached to it, the insurance company will want proof that the service provider has been contacted and asked to discontinue the service. This is to make sure that no additional charges occur onto the theft or loss has happened.
If money or travellers cheques have been lost or stolen, the insurance company will want evidence that this money was withdrawn or bought prior to the loss or theft occurring.
Damaged Baggage
Quite often baggage can be damaged or lost in transit during a plane flight, and this is one of the most common claims under travel insurance policies.
Property Irregularity Report
If this happens and is noticed during baggage reclaim, it is important that the policyholder obtains what is known as a property irregularity report from the airlines in order to prove the loss or damage occurred and is a valid claim under the policy.
It is also important to keep the luggage tags which were attacked to the boarding pass when the luggage was checked in. This can be a useful document when submitting a travel insurance claim. It is also a good idea to photograph the damage that has been caused to the baggage and ideally use a digital timestamp.
If compensation is going to be claimed from the airline itself then there are normally strict date guidelines as to how long someone has in order to submit a claim. This can often be a short as seven days and needs to be strictly adhered to.
Lost or Delayed Baggage
If the luggage or package is not at baggage reclaim and appears to have been lost or mislaid, again the airline may be responsible. It is important to notify this to airline staff in the baggage hall before leaving the hall or the airport and take a note of the baggage reference number and to get a copy of the subsequent airlines report.
Baggage Claims
Lost or damaged baggage may be claimable under an airline compensation scheme, or maybe recoverable under your travel insurance policy. What is important to note is that it cannot be claimed under both, as that would effectively be an act of fraud.
It is possible that the insurance company would request or instruct you to try and collect off the airline first, and then only claim under the policy if that proves difficult to do.
It is also possible that the insurance companies may just settle your claim and then try and reclaim the money from the airline on your behalf.
Schengen Travel Insurance
Schengen Travel Insurance
Schengen Travel Insurance is a type of insurance policy specifically designed for travellers visiting the Schengen Area in Europe.
The Schengen Area is a zone comprising 27 European countries that have abolished passport control at their mutual borders, allowing for free and unrestricted movement of people within the area.
This zone covers most of the EU countries, except for Ireland, Bulgaria, Romania, and Cyprus. In addition, non-EU countries such as Norway, Iceland, Switzerland, and Liechtenstein are also part of the Schengen zone
These countries have agreed to common visa policies for short stays. To obtain a Schengen visa, travellers are often required to provide proof of travel insurance that meets certain criteria.
The Schengen Travel Insurance must typically cover medical expenses, emergency medical evacuation, and repatriation of remains. The minimum coverage amount is specified by the Schengen regulations, and it is usually around 30,000 euros.
It’s important to note that the coverage requirements may vary slightly among the Schengen countries, so it’s advisable to check the specific requirements of the country you plan to visit.
Schengen Travel Insurance provides financial protection in case of unexpected medical emergencies during the trip, ensuring that travellers have access to necessary medical care without a significant financial burden.
Schengen Visa
Certain citizens need to apply for either a short stay visa or an airport transit visa – see here
The European Union has a list of countries whose citizens require a visa – see here
Travel Insurance by Country
Travel insurance is pretty much a must, whatever country you are going to visit, but its cost and necessity does vary country by country.
For some countries it is a legal requirement, for others things like medical costs, as per USA, make it pretty crucial for most people.
Some countries are safer than others, and some parts of some countries are safer than others.
Insurance companies require people to follow any travel advice that their national government gives out about the state of a country, and how safe it is to travel there.
Governments of other countries than your own will also have travel advice for their citizens, which will be useful to follow.
Whilst travel insurance will usually cover most medical conditions, albeit at a cost, if you have a condition such as epilepsy it is worth remembering that some countries still have quite a cultural and social problem with people who suffer from it.
It is also worth researching the medical system of any country you are going to, especially if you are visiting any remote areas of that country.
Also check if your insurance company will pay any medical bills directly to the hospital, or if you are expected to pay them and claim the money back from the insurance company.
Below is a list of articles about travel insurance to different countries, including some general travel tips and information on safety, airlines, sports, and health systems etc.
What is Single Trip Travel Insurance?
Single Trip Travel Insurance
A single trip travel insurance policy is designed to provide insurance coverage for a one-off return journey trip to one or more overseas destinations. This policy will run for a specified time, with some insurers offering a maximum of 30/31 days, and others offering up to around 3 months.
The idea of a single trip normally implies a journey to a specific country, either for a holiday, possibly a wedding or even a short weekend break. It can also include trips to several different countries so long as they are all part of the same holiday.
As insurance companies issue this type of policy on a geographical basis, it is important to remember to take the widest possible range of geographical cover provided.
Types of Policy
A single trip travel insurance policy will provide a range of different benefits, although the extent of that coverage will vary with different insurance companies.
Also, most insurance companies will offer different plans within the context of a single trip policy, often labelling them with titles such as Standard, Premiere, Premier Plus, Platinum, Sapphire, Emerald, Gold, Diamond etc.
Most of these plans will offer the same type of cover but with differing financial limits and different levels of policy excesses or deductibles.
Many insurance companies will provide specimen policies and policy wordings on their website which can be downloaded as a free pdf.
Also, many countries have consumer laws allowing for what is known as a cooling-off period after a policy is taken out, normally 14/21 days. This gives people time to look through the policy, check if it is appropriate for their needs and if not cancel it and obtain a refund of premiums paid.
Single Trip Travel Insurance
Single trip cover provides travel insurance for a single holiday trip that can include more than one country.
If you embark on two or more trips annually, opting for an annual travel insurance plan may prove more cost-effective than purchasing two separate single trip policies.
However, if you embark on a holiday only once a year, single trip insurance may offer better value.
The choice of insurance policy depends on your destination, and you can normally select from the following options:
- European single trip travel insurance
- Worldwide single trip travel insurance that includes USA, Canada, Caribbean, and Mexico
- Worldwide single trip travel insurance that excludes the above countries, but includes the rest of the world.
What a single trip travel insurance policy normally covers
- Cost of medical treatment and repatriation: Coverage in the event of an accident or illness while you’re abroad, including provisions for air ambulance services and repatriation to your home country if necessary.
- Cancellation and Curtailment: Protection against financial losses if you need to cancel or cut short your trip for reasons specified in your policy. This can often be a contentious issue as to what is and is not covered.
- Flight Cancellations: The possibility to make a claim if your flight is cancelled or delayed for over 24 hours, or if you’re not rebooked on a new flight within 24 hours (refer to the policy for specific details).
- Stolen or Lost Baggage: Compensation for lost or damaged luggage, offering financial support when airlines fail to properly handle your belongings.
- Lost or Stolen Valuables and Personal Money: Coverage for lost or stolen cash and traveler’s cheques, with some policies having limits. Consider adding extra gadget insurance for specific valuable items.
- Personal Accident Insurance
- Some Legal Expenses
A single trip travel insurance policy can normally be upgraded to include areas such as
- Cruise Cover
- No Excess Policy
- Covid Cover
- Winter sports cover, skiing etc
- Adventure Holidays
- Sports and Activities Cover
Trip Duration
A single trip travel insurance policy will vary widely in terms of the duration of the trip or policy – this normally depends on the age of the person or people insured on the policy, and the reason for travel.
This type of policy is normally intended for what might be called normal holidays or travels, as opposed to people wanting travel insurance for extended stays in a country, backpacking etc where separate insurance policies are more appropriate.
Health Requirements
A single trip travel insurance will require the proposer to answer a number of medical screening questions to determine their eligibility to be accepted for the travel insurance policy.
This can sometimes seem a bit daunting. The intent is for the insurance company to assess the likelihood of medical problems arising when overseas, based on known facts declared before travel.
The insurance company is most interested in what are known as pre-existing conditions, which can pretty much be any medical illness or disease going back over a period of time.
Insurance companies can differ quite considerably in their attitude to pre-existing condition, in terms of what they are willing to cover and at what cost, so it is worth shopping around if this is applicable to you or anyone you are travelling with.
What is really important is that you are completely honest in answering all questions – failure to do so could well result in a claim being denied at a future date.
The medical screening questions are either normally done online or via telephone. It is also important to notify the insurance company if your health changes between taking out the policy and starting your travels.
Pregnancy
A single trip travel insurance policy will normally cover someone who is pregnant, but certain time limits normally apply and will be specified in the policy. It is also important to check with the airline what their policy is.
It is worth noting the travel insurance policy would exclude what is known as medical tourism, which in this case would mean someone flying to another country ie USA, specifically to give birth in order to gain citizenship.
Single Trip Travel Insurance Claims
In the event of you needing to make a claim there are a couple of things to be aware of. The policy will normally contain a 24 hour emergency line that you can ring in the event of a medical emergency and get help from.
The policy will have quite strict time and date requirements as to when the insurance company must be notified of either a hospital admission or claim under the policy.
It is worth checking with the insurance company if they will pay any hospital bills directly, or if they expect you to pay up front and then make a claim to be paid back for any costs.
In the event of making any claim, the insurance company will require a certain amount of documentation in order to verify the claim details, normally known as claims evidence. What documentation is required should be specified in the policy document.
Benefits
The single trip travel insurance policy will have what is referred to as a schedule or table of benefits. This will spell out in detail what financial compensation you are entitled to if a valid claim is made under the relevant section. Some sections may not apply to your policy and as such would not be valid.
Cancellation of Trip and Trip Disruption
This is often the most contentious area of disputes relating to travel insurance policies. Insurance companies are very specific as to what they will and won’t cover in the event of a trip needing to be cancelled or delayed, and the reasons for it.
The insurance policy will spell out these terms and conditions of cover in a specific section of the policy.
Personal Belongings
A single trip travel insurance policy will normally cover someone’s personal effects and their baggage against most types of loss or damage.
Items classed as valuables will normally be covered, but may need a different section. There is likely to be a single article limit, as well as a overall limit for valuable items. Some insurance companies deem items such as laptops and tablets as valuables.
You will be expected to take sensible precautions against loss of valuables – if not any claim may be declined. The example normally given is not leaving valuables such as a camera unattended in a cafe or visible in an unoccupied car.
Different Levels of Single Trip Travel Insurance
Most insurance companies offer different levels of cover for their travel insurance policies, which in effect are basic, average and premium, although they will use much nicer terms.
All will have some level of cover as described above, but the premium policy is likely to include perks such as access to a complimentary airport lounge in the event of a plane delay.
Documents
A single trip travel insurance policy will have a built in expectation that you have the correct travel documents you need in order to enter the country you are visiting.
- sign your passport and complete the emergency contacts page
- ensure that your passport meets the entry requirements for the country you are visiting (for example, it may need to be valid for a set period after your trip ends)
- get the correct visa for your destination
- take an extra form of photo ID with you, other than your passport
- if you are travelling with children check whether you need extra documentation
- if you plan to drive abroad check whether you need an International Driving Permit (IDP)
Policy Exclusions
All single trip travel insurance policies will have some exclusions, and it is worth being aware of them before travelling so as not to be caught unaware.
Review the coverage of your insurance policy in the following areas:
- Alcohol and Drugs: Most travel insurance policies exclude events occurring after excessive alcohol consumption or the use of recreational drugs or other substances.
- High-Risk Destinations: Check whether your travel insurance covers trips to destinations deemed high-risk by your national government. If they advise against all but essential travel or all travel to a specific country, your policy may not provide coverage. Review your policy details and the relevant country travel advice pages before booking your trip and purchasing insurance.
- Mental Health Conditions: Some policies may not cover treatment related to pre-existing mental health conditions. Refer to foreign travel advice for individuals with mental health issues for additional guidance.
- Age Restrictions: When purchasing a policy, verify if there are any age-related restrictions. If so, seek guidance on selecting the appropriate level of cover, obtaining the best deal, and making a travel insurance claim. Specialized advice is often available for travellers over 65 or those with pre-existing medical conditions.
- Adventure Sports: Standard policies typically do not include coverage for activities such as bungee jumping, jet skiing, winter sports, skydiving, quad biking, or moped rentals.
- Driving Overseas: If you plan to drive overseas, check the driving abroad guidelines. For rental cars, assess the coverage provided by the rental company. If using your own vehicle, review your motor insurance policy to understand the extent of coverage.
- Terrorist Acts: Most policies offer limited coverage for terrorist acts. At a minimum, ensure your policy covers emergency medical expenses and repatriation in the event of a terrorist attack. Some insurers offer add-ons for additional coverage in case of a terrorist attack in your destination, including cancellation cover if your trip is affected before departure.
- Other Incidents: Some policies provide limited coverage for claims related to natural disasters (e.g., earthquakes or tropical cyclones) or civil unrest. Additionally, coverage may be restricted for incidents (e.g., strikes or industrial action) that were publicly known when you booked your trip or purchased your travel insurance.