Travel Insurance for Businesses
Travel insurance is designed for problems that arise suddenly during a trip. Travel insurance offers a broad range of benefits and services, such as worldwide emergency hotline services, medical evacuation, reimbursement for unexpected cancellation or delay, and more.
What does it cover?
Basic coverage usually includes reimbursement for trip cancellation, interruption and delay because of illness, bad weather, baggage loss or delay, medical insurance and medical evacuation (in case of illness or injury during travel), and a 24-hour assistance telephone line.
How does it work?
Typical coverage costs 4% to 8% of the cost of the trip, depending on the trip’s length, the destination, the traveler’s age and the type of coverage. For example, insurance for a $2,000 trip may cost $80 to $160. If you consider the expense for any troubles your employees may encounter, travel insurance can be a cost-effective option to avoid that risk.
Employers can purchase insurance specific to employees they send overseas for business purposes—even if the trip is short term. Obtaining medical treatment and hospital care abroad can be expensive. Generally, American medical insurance is not accepted overseas, nor do the Social Security, Medicare and Medicaid programs provide coverage for hospital or medical costs outside the United States.
Instead employers can purchase supplemental medical coverage for their employees that their current health plan does not supply. For instance, medical travel insurance will pay for medical evacuation by helicopter if traveling in a place with inadequate facilities. This can otherwise cost up to $50,000.
Be aware that some plans require your out-of-pocket payment, and then will pay claims after the traveler returns home.
Should I get Travel insurance for my business?
Companies with employees who travel for business may want to consider supplemental coverage from a travel insurance policy.
Think about the following scenarios when traveling for business:
- You receive notice that a top executive in your company was in a car accident while on a business trip in Milan.
- You get a telephone call that an employee stationed for the month in Sydney experienced symptoms of a stroke.
- There was an earthquake in Chile, which prevented an employee from returning on time from a business trip.
- Several of your employees traveling together in Beijing came down with pneumonia.
These situations should prompt you to examine whether you would know what steps to take next. Do you know what guidance to give these employees? Could you direct them to any specific medical facilities? How familiar are you with the medical system of that country? How much would it cost to arrange alternate travel plans in the event of a delay or setback?
Purchasing an international travel insurance policy may be the only way you can cover all your bases. Employers with workers who travel internationally for business purposes should find out exactly what their health plans cover, in the event the employee needs medical treatment overseas.
Additionally, the U.S. Government requires that employees hired by contractors and subcontractors to work on international government contracts be protected by Defense Base Act Coverage (DBA), regardless of their assignment or location. This coverage provides workers’ compensation benefits in the event of a work-related injury or illness. There are five employment situations which require this coverage:
- Any employee working on a military base or reservation outside the United States
- Any employee engaged in U.S. government-funded public works business outside the United States
- Any employee engaged in public works or military contract with a foreign government which has been deemed necessary to U.S. National Security
- Those employees who provide services funded by the U.S. government outside the realm of regular military issue or channels
- Any employees of sub-contractors of the prime or letting contractor involved in a contract like numbers 1-4 above
If you have more questions or would like to open a travel insurance policy, reach out to one of our experienced agents today.