Travel is a regular part of the business world. Attending trade shows, meeting with investors, and negotiating with suppliers, your professional responsibilities will likely take you away from your home base. The last thing you need to think about is the financial burden of an employee’s delayed trip or lost luggage that contains company property.
Have you thought about corporate travel insurance? Continue reading to see if it’s the right travel protection solution for your business.
What is Corporate Travel Insurance?
Corporate travel insurance covers business owners and employees who travel for work, either in the US or abroad (depending on their plan). Think of it as your financial protection against serious accidents, travel delays or illness.
You have a multitude of options when selecting a policy and when evaluating policies, you’ll need to consider which components are most important to you (and your employees). In general, most corporate travel insurance policies cover:
Medical Emergencies
Accidental injury or illness while traveling is covered under most corporate policies up to the stated maximum allowable benefit. Depending on the plan, this can also cover travel costs if you or an employee needs to be flown home for further medical attention.
Damages for Lost or Stolen Property
Unfortunately, sometimes it pays to think of the worst case scenario situation. Under corporate travel insurance, lost baggage and document protection provide an extra sense of security. Depending on the policy chosen, funds will be reimbursed to travelers for all lost or stolen items. Delayed baggage can also be covered so travelers can purchase any immediate necessities until reunited with their baggage.
Last Minute Cancellations & Delays
Unfortunately, every traveler has dealt with the hassle and inconvenience of an unexpected flight cancellation or delay. However under a corporate travel plan, the potential stress of this situation can be minimized knowing that the expenses associated with your revised plans are most likely covered.
Typically, if a flight is canceled or delayed, your policy will cover expenses incurred for
- All meals that are eaten as a result of the delay
- The car service to a hotel from the airport and back
- A hotel room if needed
- Any booked hotel stays that were missed
Every insurance policy will have its own set of rules and regulations (i.e. the maximum cost for the hotel stay, meals, etc.), but these are the standard benefits you can expect.
Rental Car Coverage
Some corporate travel insurance plans cover rental car insurance for traveling employees. Typically, business policies will cover any incurred rental car collision, vandalism or weather-related damage. This can also be an add-on to consider if it’s not part of your plan.
What Corporate Travel Insurance Does NOT Cover
Every insurance policy will have its own set of agreements and regulations; however, many policies do not cover:
- Travelers over the age of 75
- Pregnancy-related medical expenses
- Certain pre-existing conditions
- Engaging in reckless activities or behavior
Of course, check with your provider to see what’s covered under your policy.
Corporate Travel Insurance Benefits
As mentioned above, corporate travel insurance provides coverage for unexpected travel experiences. Of course, you hope that every business trip runs smoothly, but this can be outside of your control and could unexpectedly cost your business hundreds or thousands of dollars.
Benefit #1: Employee Safety
Does your business have a well-defined travel safety policy?
Corporate travel insurance creates a transparent plan of action for worst-case scenarios during business travel. As a business owner, the safety of your employees is the most important benefit of purchasing corporate travel insurance.
It also supports the Duty of Care, which is a business owner’s legal responsibility to fulfill the safety and protection of their employees during travel. The “Duty of Care” ensures that business owners always put their employees’ best interest and well-being first, and use reasonable care when dealing with people. Business owners who fail to meet their “Duty of Care” can be met with an expensive tort lawsuit, especially if it results in injury or death.
In short, establishing a travel insurance policy protects employees by creating a clear travel safety policy and protects business owners from legal action that may be taken if an employee becomes sick or injured during travel.
Benefit #2: Investment Protection
The cost of traveling frequently for business is a major expense for company owners – hotels, baggage expenses and per diems can all quickly add up. Unforeseen flight delays or cancellations can skyrocket these expenses. Adding insurance to cover these trips safeguards your investment.
Corporate travel insurance covers the expense of the trip itself, and the valuables being traveled with; both professionally and personally. The insurance covers any of your employee’s lost or damaged items, as well as company equipment like sales samples and technology (laptops, mobile phones, tablets, etc.).
Under corporate policies, trip cancellation and interruption are insured, meaning that business owners can be reimbursed for “non-refundable” losses such as hotel stays and deposits.
Benefit #3: Peace of Mind
If you’re not the gambling type and have employees that travel frequently for business, corporate travel insurance may be worth considering. You can plan your next trip with confidence knowing that there is a safety net to protect your employees’ health, time and possessions.
Is This Right For Your Business?
Think about your company and its current or anticipated employee travel needs. What types of business trips do you take? Do you usually travel with valuables, like a laptop or an expensive suit? What would happen if these were lost during your trip? What if your flight is delayed and you have to pay to reschedule so you can still make it to your important meeting? Also, who is going to pay for it?
Policies can cover these unexpected expenses. If your employees travel frequently, corporate travel insurance might make sense, but it is ultimately your decision.
To make your business trip even smoother, consider booking a private car service. Teddy’s professionally-trained chauffeurs are committed to getting clients to their destination safely so that you can stay focused on your work.
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