Business travel is often planned around flights, hotels, meetings and schedules. The risks associated with that travel are sometimes considered only after something goes wrong.
For companies with employees travelling internationally, that can be a costly mistake.
A medical emergency, cancelled flight, lost luggage or travel disruption can affect not only the employee but also the business activity connected with the trip.
Business travel insurance can therefore form part of a wider corporate travel risk-management strategy.
Why business travel needs risk management
A business trip may appear straightforward.
An employee flies to another country, attends several meetings and returns home.
But international travel involves uncertainty.
A delayed flight can result in a missed client meeting. Lost luggage can create additional expenses. A medical emergency can require treatment abroad. A cancelled trip can disrupt a company’s plans.
The financial consequences may therefore extend beyond the cost of the original journey.
This is why companies should consider travel risk before employees leave.
A useful external resource for professional travellers is this guide to business travel insurance and the risks of business travel.
Travel insurance as part of corporate risk management
Travel insurance should not replace a company’s existing business insurance.
Instead, it can complement it.
Business insurance generally deals with risks associated with running a company, while travel insurance addresses certain risks associated with international journeys.
A business may have insurance covering its premises, liability and other operational risks while an employee travelling overseas may still require appropriate travel protection.
Companies should therefore review their insurance arrangements as a whole.
The key question is not simply:
“Does our company have business insurance?”
The more useful question is:
“Are our employees appropriately protected when they travel for work?”
Five areas companies should review
- Emergency medical expenses
Medical emergencies are one of the most important risks associated with international travel.
An employee could become ill or have an accident while abroad and require medical treatment.
Depending on the policy, travel insurance can provide protection for certain emergency medical expenses.
Companies should ensure that employees understand what assistance is available and how to use it.
- Medical transportation and repatriation
In serious situations, a traveller may need transportation to an appropriate medical facility or repatriation.
These benefits can be particularly important when an employee is travelling far from home.
The exact conditions and limits vary between policies, so businesses should examine the policy documentation carefully.
- Flight cancellations and delays
A business traveller may have an entire day organised around a single flight.
If that flight is cancelled or significantly delayed, meetings and appointments may be affected.
Travel insurance can include benefits for certain covered travel delays and cancellations.
However, businesses should never assume that every disruption is automatically covered.
The policy terms determine when a benefit applies.
- Lost or delayed luggage
Business travellers often carry more than personal belongings.
They may have work clothing, presentation materials, laptops and other equipment.
Lost or delayed luggage can therefore create additional expenses and inconvenience.
Companies should check baggage limits and determine whether valuable equipment is covered or subject to specific conditions.
- Emergency assistance
Insurance is not only about financial compensation.
For an employee who experiences an emergency overseas, knowing who to contact and what to do can be extremely valuable.
A company should ensure employees have access to their insurance details and emergency assistance information before leaving.
Should companies consider annual multi-trip insurance?
For companies with employees travelling frequently, annual multi-trip insurance may be worth considering.
Rather than arranging separate cover for every journey, an annual policy can provide protection across multiple trips during the policy period, subject to its terms and conditions.
This can simplify the administration associated with frequent business travel.
SoEasy Travel Insurance currently offers annual business travel insurance designed for frequent business travellers, with information covering areas such as medical expenses, repatriation, cancellation and departure delays.
Businesses can therefore review SoEasy Travel Insurance’s business travel insurance options when evaluating possible travel protection.
What should a corporate travel policy include?
Insurance is only one part of business travel risk management.
Companies can also establish an internal travel policy covering issues such as:
- Who approves international travel
- What information employees must provide before travelling
- Which destinations require additional approval
- What insurance arrangements apply
- Who should be contacted during an emergency
- How incidents should be reported
- What travel expenses are reimbursable
- What documentation employees should carry
Clear procedures can help employees understand what to do before and during an international trip.
Frequency changes the risk
A company sending an employee abroad once a year has a different risk profile from a company with employees travelling internationally every month.
The more frequently employees travel, the more opportunities there are for unexpected events.
This is one reason companies should periodically review their travel insurance arrangements.
The objective is not simply to buy a policy and forget about it.
Businesses should consider whether their current coverage still reflects:
- Number of travelling employees
- Destinations
- Frequency of travel
- Average trip duration
- Types of business activities
- Equipment employees carry
- Required assistance services
Business travel and duty of care
Companies also need to consider their responsibilities toward employees travelling on business.
Travel risk management can include practical measures such as destination research, emergency communication procedures and appropriate insurance.
Insurance does not eliminate the responsibility to prepare employees properly.
Instead, it can form one part of a broader system designed to reduce the financial impact of unexpected events.
What should employees check before departure?
Even when a company manages the insurance arrangements, employees should understand their own cover.
Before travelling, they should know:
What is covered?
Employees should understand the main benefits relevant to their journey.
Who do I contact during an emergency?
Emergency assistance details should be easily accessible.
Is my destination covered?
Geographical restrictions should be checked.
How long can I travel?
Annual policies may have limits on the duration of individual trips.
Are my belongings covered?
Employees carrying expensive equipment should understand applicable limits and conditions.
What are the exclusions?
Employees should know when the policy may not respond.
Why companies should review travel insurance before the next trip
Travel arrangements change.
An employee who previously travelled within Europe may later start travelling to other regions. A company may also increase the number of employees travelling internationally.
These changes can affect the suitability of existing insurance arrangements.
A periodic review helps ensure that the policy remains appropriate for the company’s actual travel profile.
Final thoughts
Business travel is an important part of modern business, but it introduces risks that companies should actively manage.
Travel insurance can help address certain unexpected medical, travel and baggage-related expenses, subject to the terms of the policy.
For companies with frequent international travel, annual multi-trip insurance may also provide a practical way of managing travel protection.
The important point is to avoid treating travel insurance as an isolated purchase.
It should form part of a wider business travel risk-management strategy.
For professionals who want a broader overview of the subject, the Business Travel Insurance Explained article provides additional information about the risks and considerations associated with business travel.
Companies and professionals can also explore business travel insurance from SoEasy Travel Insurance as part of their research.