Travel Management
 min read

5 Reasons Why You Need Business Travel Insurance

November 18, 2022
Locomote team
Tass Messinis
November 18, 2022
Locomote blog posts

Travelling for business can be a very stressful experience. There are so many things to worry about — from booking flights to finding your hotel. 

That’s just the tip of the iceberg. Underneath the dark, cold seas of business travel are all the unforeseen (but still likely to happen) circumstances. These include missed connecting flights, sudden flight cancellations, lost baggage, extreme weather conditions, and medical emergencies.

Being caught unaware by any of these can immediately sink any excitement you may have for your trip. Even worse, it can bring down employee morale and affect their performance when conducting business with clients or partners.

If you want your employees to travel with peace of mind and be able to put their best foot forward in front of clients, then you need to take better care of them. This means giving them sufficient travel and financial protection in the form of business travel insurance.

These policies help decrease some of the stress, worries, and anxiety due to potential travel issues. Below are the top reasons why investing in a business trip travel insurance is a sound business decision.

1. Protect Your Employees From Hazards

Business travel insurance protects your employees against different types of travel risks and hazards. These range from medical or health-related risks to even sudden natural disasters and terrorist incidents.

A robust travel insurance policy acts as a buffer to help lighten financial losses from these hazards. The insurance can cover for permanent disabilities, injuries from accidents, and even loss of life.

Some travel insurance providers offer additional safety and security services through their phone apps. They can send real-time alerts in case of any threats, track location for rescue if necessary, and provide assistance in case of emergencies.

Moreover, a comprehensive business trip travel insurance policy can help companies retain valuable employees. It’s a great way to show that you care. 

After all, what employee wouldn’t appreciate the level of protection such policies provide? What employees would want to stay with an employer that makes them deal with the fallout caused by flight cancellations, lost work equipment, and other issues by themselves? We sure don’t know anyone that would!

2. Unexpected Travel Changes

Unexpected flight delays and cancellations happen all the time. It doesn’t matter whether it’s due to sudden changes in the weather or issues with the plane or airport — there is nothing you can do about it.

Since you can’t turn back time either, the only thing left to do is to reschedule the trip and hope for the best this time around.

Annual business trip travel insurance comes in handy during these frustrating occurrences. Not only will it cover all or most of the costs of the cancelled trip, but it can also cover the cost of the new travel arrangements. More importantly, if another set of unexpected travel changes come up, these would still be covered by the insurance.

If you have comprehensive business travel insurance, the coverage extends to any subsequent changes to hotel bookings as well.

3. Serious Illness While Travelling

The COVID-19 virus may have slowed down its reign of terror, but it is still present. Many still get sick from the virus. Although the effects are much less serious thanks to vaccinations, those who are more susceptible to the virus may still have a harsher experience.

Travellers are generally more vulnerable to illnesses — not just COVID-19 but even regular colds, allergic reactions, food poisoning, and other health complications.

This is partly due to the age-range of business travellers; many of them are middle-aged and may have weaker immune systems. The changes in the environment, enclosed space and recycled air in planes, and work stress and jet lag all contribute to making employees more at risk.

Business travel insurance ensures that your employees’ are well-taken care of if they ever get sick during the trip. Policies generally cover hospital stays or reimburse prescription medications.

This is especially important for travelling overseas. Many medical facilities in other countries do not take typical health insurance plans. Even worse, many foreign medical institutions require cash payment upfront.

Having business trip travel insurance can cover the costs of medical and dental emergencies. It can also help pay for emergency medical transportation back to your area.

4. Luggage Contains Important Documents

How do your employees dress when travelling for business? If they dress in professional attire, they can easily become targets of pickpockets. Corporate travellers are known to carry expensive laptops, phones, and other work gadgets, which makes them look even better in the eyes of thieves.

Theft of work devices are generally included in the most basic business travel insurance plans. This helps reduce hassle and expenses when replacing them.

Insurance coverage usually extends to lost luggage as well, which happens a lot with checked-in bags. It covers lost or stolen bags for the whole trip — not just while you’re at the airport.

Aside from lost luggage, the coverage can also extend to lost, stolen, and damaged important documents, such as employees’ passports, licences, and other IDs. Employees can get reimbursed for the re-application fees for their personal documents.

5. Severe Weather Conditions

Weather is a tricky subject — especially for international travel. As much as weather forecasts try, they are not always 100% accurate. 

Sudden changes in the weather are a common reason behind flight changes or cancellations. Business trip travel insurance will help compensate for the added costs of rebooking any flights, hotel accommodations, and other transportation. It can also pay for added trips in case of any flight deviations or unexpected landings to weather out an unexpected storm.

Some business travel insurance policies also cover trip interruptions as a whole — not just flight cancellations. If you have to cut your business trip short due to a mandatory evacuation, some insurance plans can cover the cost of booking an earlier return.

In the event of severe weather conditions and natural disasters, such as massive floods or volcanic eruptions, business travel insurance coverage can also provide employees with emergency travel assistance. This includes concierge services, help returning a rental car, or even evacuations. It can also help ensure your employees’ immediate repatriation if necessary.

How and Where Should You Get Business Travel Insurance

If your company provides employees with a corporate credit card for business travel expenses, you may already get a certain degree of coverage. However, these are often not particularly extensive.

Getting standalone corporate travel insurance allows businesses to ensure the safety and peace of mind of their employees.

There are some travel agencies that offer travel insurance coverage as part of their services or packages. It’s also possible to buy annual business insurance policies directly from insurance agencies, airlines, or through a third-party company. 

The internet makes it easier to find, compare, and select the most appropriate business travel insurance policy for your company without the aid of travel agencies. A quick search on Google offers a selection of travel insurance providers. 

Below are a few things we recommend looking for to help you zero in on the right business travel insurance provider:

  • Emergency medical care in case of illness or accidents
  • Medical transportation back to your area for overseas trips
  • Reimbursement of travel or accommodation costs in case of delays, cancellations, or missed departures
  • Coverage for pre-existing conditions
  • Coverage for lost, stolen, or damaged items and baggage
  • Annual multi-trip insurance policies, in case your employees travel frequently
  • Reasonable costs
  • 24-hour customer service

Travelling With Peace of Mind

As a business owner, you are ultimately responsible for the health, safety, and well-being of your employees whenever they are out on a business-related trip. Incorporating business travel insurance into your company’s travel policy makes work trips much easier and more convenient.

An annual business travel insurance policy not only protects your employees but also shields the company as a whole against financial losses and liabilities. Investing in the right corporate travel insurance policy allows the business to thrive and the people who support its growth to have peace of mind.