Corporate Travel Insurance During COVID-19
The spread of COVID-19 has been developing rapidly, with businesses and service providers across the world scrambling to adapt to the different changes and implications. One of the first restrictions put in place was on travel, including the eventual closure of international and domestic borders globally.
Corporate Travel insurers were quick to respond with their initial stance on this pandemic and how their policy wordings would respond to COVID-19 related travel claims. As the virus and its influences have developed, insurers have released details on how their policies will respond moving forward.
Corporate Travel Claims and Exclusions for COVID-19
Corporate Travel policies do not typically have a general exclusion for epidemic or pandemic events, however they are more likely to respond where a situation is unforeseen. When COVID-19 was declared a global pandemic by the World Health Organisation, and advice not to travel was provided by the Australian Department of Foreign Affairs, insurers considered the COVID-19 pandemic as a foreseen circumstance, deeming this event as unlikely to be covered by insurance.
Each insurer has released their own statements on specific dates that cover may be restricted, so we advise to contact your relevant service provider to confirm this on a case by case basis. We have included links to the insurers KBI commonly use for Corporate Travel policies:
We also recommend seeking advice from your insurance provider to check your policy wording for eligibility, cover entitlement and to confirm what type of expenses may be able to be claimed as part of claim through travel disruption.
If a travel cancellation or disruption loss does occur, look to contact your travel agent or the airline (before submitting a claim) to seek a refund or make alternate travel plans based on existing bookings. If unsuccessful and you are still in a loss position, contact your insurance provider to submit a claim along with the original and amended itineraries, plus any supporting documentation to substantiate this loss.
As always, each claim will be considered on its merits considering the individual circumstances of the claim and the terms and conditions of the policy from all insurers.
Purchasing or Renewing a Corporate Travel Policy
Taking out a new Corporate Travel policy at this stage would not be advisable due to the current travel restrictions in place and exclusions towards COVID-19 related claims.
Regarding existing policies, it might be advisable to renew this at a minimum premium for continuity of cover (which will have restricted cover) or if you are still undergoing certain travel (i.e. FIFO), then add the additional trips “mid-term” once restrictions have been lifted. We also recommend carefully considering your declared annual trip projections, as this will directly influence the renewal premium.
Insurers are also willing to cancel current Corporate Travel policies that are in place and provide a pro rata refund, so there are options and the best course of action might depend on the individual circumstance.
For the best or most relevant advice on any of the above, it is recommended to contact your insurance provider as each circumstance and policy might be very different.
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