Corporate Travel Insurance: A Must-Have for Business Travellers
What is Corporate Travel Insurance?
Corporate Travel Insurance is an often overlooked yet essential cover for businesses looking to protect the Directors/Employees and even the accompanying spouse/children whilst travelling domestically and internationally for work.
Corporate Travel policies offer a variety of benefits/covers with key coverages including:
➤ 24/7 coverage
➤ Medical assistance
➤ Personal accident and sickness cover
➤ Travel cancellation costs
➤ Lost baggage
➤ Kidnap & ransom
➤ Vehicle rental excess
➤ Alternative employee coverage
➤ Extra-territorial workers’ compensation
Table of contents
Why Do Businesses Need Corporate Travel Insurance?
Corporate Travel policies are often looked at as a ‘luxury’ rather than a necessity. When you look at overseas medical costs it is very quickly shown that this cover is not a luxury and a must for businesses that send employees on regular work travel. Here are a few examples:
Whilst medical costs are generally covered when travelling domestically in Australia under Medicare or Private Health there are still a few key reasons to consider Corporate Travel Insurance including some cancellation costs, baggage cover, car hire excess and that’s just to name a few.
The Benefits of Corporate Travel Insurance for Businesses
There are a few benefits included in your corporate travel insurance policy such as:
➤ Hire Car Excess – Cover your collision damage excess, rather than paying the car hire company’s extra charge.
➤ 24/7 Emergency Contact – All insurers have a 24/7 contact line for emergencies which should be kept handy and made available to all employees.
➤ Alternative Employee Cover – If your employee is injured/becomes ill on a trip this benefit covers the cost of temporarily employing someone to fill the position of the injured/sick employee until they have recovered.
➤ Most policies extend to cover accompanying partners/spouses and children.
➤ Corporate travel policies also allow you to declare and cover leisure trips; given that the policy covers predominately business trips.
➤ Personal/business effects can also be covered (check with your broker to ensure that the coverage meets the costs of luxury items).
➤ Electronic Equipment – Such as laptops/phones etc. (please note only a small limit is allowed which is usually around $5K dependent upon the insurer. Any specialised tools or business equipment will need to be covered under a separate policy, which your broker will be able to assist with).
What Isn’t Covered?
Common circumstances traditionally excluded from most Corporate Travel Insurance policies:
➤ Government-mandated lockdowns and border closures
➤ Disinclination to travel
➤ Travel Provider Insolvency
➤ Presence of some pre-existing medical conditions
➤ Claims relating to pregnancy
➤ Over 75-year-old travellers
➤ Travelling against medical advice
You will note that insurers have adjusted their policies to address the health risks associated with travelling around COVID-19.
As specialist insurance brokers, we can access various insurers in the market that can potentially provide cover against some of the above. In principle, some exemptions can be made if your doctor or specialist clears you to travel, our team can then help find a policy that meets your requirements.
No Insurance? No Entry – Nations Asking for Beyond Passports
It is becoming more prominent for countries to require you to have travel insurance coverage as part of their entry requirements. This helps ensure that international travellers have enough coverage for unexpected medical bills or other related travel expenses. Therefore, ensuring that government services, medical services and other businesses are not left out of pocket by travellers not intending to pay the bill.
Singapore, Thailand and the UAE now require you to have travel insurance as part of their entry requirements. Travellers applying for a visa to visit European countries in the Schengen Area will also require proof of travel insurance.
Visit the Smart traveller website for more information: https://www.smartraveller.gov.au/
How To Obtain Corporate Travel Insurance
Contact your Broker who will have access to a range of insurance providers. You will need to complete a Travel Declaration, where you will declare the trips you have planned for the upcoming year (business and leisure). Policies are annual however the premium is based on the number of trips declared.
If you need to cover any additional trips in the policy period you can contact your broker who will be able to add them (additional premiums apply).
Should you need more information on Corporate Travel Insurance, please contact the KBI team on 1300 907 344 or email firstname.lastname@example.org
Have any questions?
Talk to one of our Brokers today!
We are a specialist insurance brokerage with an emphasis on adding value to our clients by helping them make an informed decision. Our approach combines that of an insurance broker and consultant, where we focus on providing expert advice to our clients while customising their insurance program and risk management solutions.
Since starting in 2013, KBI is constantly growing and becoming a leader in the Australian market. Our primary point of difference is that we don’t try to be all things to all people. We work in niche areas, where we can tailor an offering, advice and broker support to meet the specific area’s needs.
Laura Howarth is an Account Executive at KBI with a focus on the management of our corporate and complex client portfolio.