How to Choose a Business Travel Insurance Plan

Last Updated: September 23, 2024September 23, 2024 — 6 min read

Frequent travelers’ business insurance ensures unforeseen events don’t derail the trip—or your bottom line. This guide will explain how to choose a business travel insurance plan that works for you, covering everything you and your employer need to know about this substantial investment.

What Is Business Travel Insurance?

Business travel insurance covers employees traveling for work and offers reimbursement for disrupted trips due to covered reasons. It protects against financial losses and disruptions, such as flight cancellations, medical emergencies, baggage loss, political unrest, etc. Unlike standard trip policies, business trip insurance is tailored to the needs of business travelers, offering coverage options specific to corporate travel.

Why You Need Business Travel Insurance

From last-minute schedule changes to accidents abroad, traveling for work is filled with uncertainties. Here’s why investing in business travel insurance is a wise decision:

1. Financial Protection: Business trips can be costly for employers. Insurance helps protect that investment by covering trip costs impacted by flight cancellations, trip interruptions, or lost equipment.
   
2. Medical Coverage: Medical emergencies can be costly, especially abroad, since health insurance doesn’t usually travel internationally. Business travel insurance ensures medical care without exorbitant bills.
   
3. Peace of Mind: Knowing you’re covered allows you to focus on the purpose of your trip rather than worrying about what could go wrong.

How to Choose a Business Travel Insurance Plan

There are many options, but choosing the right plan becomes easier when you understand what a policy covers. Just keep your specific needs, potential risks, and available options. Here’s what to consider:

Travel Insurance Coverage Needs:

Think about what coverage you need for your trip. Common types of coverage in business travel insurance plans include:

• Trip Cancellation or Interruption: This policy protects against non-refundable expenses if you need to cancel or shorten your trip due to unforeseen circumstances.
  
• Medical Coverage: Essential if you’re traveling internationally, as medical expenses can be high.
  
• Emergency Evacuation: This program provides assistance and coverage if you need to evacuate due to a medical emergency, natural disaster, or political unrest.
  
• Baggage delay: Professional outfits are expensive! But with a business travel insurance policy, replacing essential items if your luggage is lost or delayed is easy.
  
• Business Equipment Protection: Business travel insurance policies often cover laptops, phones, and other business equipment that may be lost or damaged while traveling.

Business-Specific Add-Ons:

Look for plans that offer business-specific add-ons:

• Replacement Colleague Coverage: If you can’t attend a meeting or conference, this coverage pays for a colleague to take your place.
  
• Rental Car Coverage: Many business travelers rent cars. Ensure your plan includes rental car insurance to avoid costly repairs or damages.
  
• Liability Coverage: If you host events or meetings abroad, liability coverage protects against potential legal issues.
  
• Employment Layoff: Although not an event anyone wants to consider, this is a risk worth considering, given the pace of technology and shifting economies. Some plans offer protections if this happens (from an employee’s perspective), so any expenses you, not your company, could be liable for, this add-on could offer peace of mind.

International Travel Coverage

Ensure your plan offers worldwide coverage. While some policies provide blanket worldwide coverage, others may exclude certain regions, such as high-risk areas or countries under travel advisories. So, choose a plan that aligns with your travel destinations to maximize protection and peace of mind.

Frequency of Travel: If you travel frequently, consider an annual corporate travel insurance plan instead of single-trip coverage. It’s often more cost-effective and ensures you’re always protected.

Policy Limits and Deductibles: Understand the policy limits and deductibles before purchasing. Higher coverage limits provide more protection but may come with higher premiums. Find a balance that fits your budget and coverage needs.

Comparing Business Travel Insurance Providers

Not all business travel insurance providers are created equal. Here’s how to compare and choose the right one:

1. Check Reviews and Ratings: Review customer reviews and ratings to see how other business travelers rate the provider’s customer service, claims process, and overall experience.
   
2. Evaluate the Claims Process: Most travelers prefer an easy and quick claims process, especially when dealing with the stress of a travel mishap. Check if the provider offers a 24/7 claims hotline and an online claims submission process.
   
3. Assess Financial Strength: Choose a provider with a solid financial rating to ensure they can pay out claims when needed. Companies like AM Best, Standard & Poor’s, and Moody’s provide financial strength ratings for insurance providers.
   
4. Customization Options: A good business travel insurance provider should offer customizable plans that let you choose the coverage options you need without paying for extras you don’t.

The Difference Between Business Travel Insurance and Corporate Travel Insurance

The terms “business travel insurance” and “corporate travel insurance” are often used interchangeably, but there are subtle differences:

• Business Travel Insurance typically covers individual business trips. It’s ideal for freelancers, entrepreneurs, or companies with infrequently traveling employees.
  
• Corporate Travel Insurance: Designed for companies with multiple employees who travel frequently. These plans offer more comprehensive coverage and often come with the option to cover various trips or travelers under one policy.

Ultimately, choosing between the two depends on your travel frequency and the size of your team.

Standard Exclusions

It’s important to know what’s not covered. Common exclusions include:

1. Pre-existing Medical Conditions: Most plans don’t cover medical emergencies related to pre-existing conditions unless you purchase a waiver. Also, medical insurance often doesn’t extend internationally.
2. High-Risk Activities: Extreme sports or adventure tourism are usually not covered.
   
3. War or Terrorism: Coverage for incidents related to war or terrorism may not be included in standard policies but can sometimes be added as a rider.

How to File a Claim

If something goes wrong during your business trip, here’s how to file a claim:

1. Contact Your Provider: Call the 24/7 emergency hotline or visit their website to start the claims process.
   
2. Collect Documentation: Gather all necessary documents, such as receipts, medical reports, police reports, and travel itineraries.
   
3. Submit Your Claim: Follow the provider’s instructions for submitting your claim online or through email/mail.
   
4. Follow-up: Check the status of your claim regularly to ensure it’s being processed.

Tips for Saving Money

1. Compare Quotes: Don’t settle for the first option you find. Consider our comparison tool, AM Best ratings, or travel insurance companies’ reviews to help inform your choice.
2. Bundle Policies: If you need multiple types of insurance, like multi-trip, family, and coverage for pre-existing medical conditions, look for providers that offer bundling discounts.
3. Opt for Group Policies: If you have multiple employees traveling, group policies are often cheaper than buying numerous individual policies.
4. Choose a Higher Deductible: Opting for a higher deductible can lower your premium, but be sure you can afford the out-of-pocket expense in case of a claim.

Best Travel Insurance Providers for Business Trips

To help you get started, here are some top-rated providers to consider:

1. Berkshire Hathaway Travel Protection: Offers comprehensive plans with robust coverage options, including medical, trip interruption, and baggage protection. Known for its reliability and customer trust in our marketplace.
   
   Our Take: Berkshire Hathaway’s ExactCare plan is well-suited for international business travel. It offers robust coverage for medical emergencies, evacuation, and trustworthy trip cancellation and delay benefits.
   
2. Generali Global Assistance: A popular choice among business travelers, providing a wide range of coverage options, including trip cancellation and medical benefits, along with 24/7 assistance.
   
   Our Take: The Preferred Plan from Generali Global Assistance offers a balanced approach to coverage, with solid medical, cancellation, and baggage benefits. It’s an excellent option for business travelers seeking dependable international protection.​
   
3. Tin Leg: A Squaremouth brand offering various levels of coverage tailored to business travelers, including trip cancellation, emergency medical, and travel delay benefits. Tin Leg is known for its affordability and comprehensive options.
   
   Our Take: The Tin Leg Gold Plan is highly recommended for international travelers. It offers comprehensive coverage with high medical and evacuation limits, making it ideal for business trips to various destinations.
   
4. AXA Assistance USA: Offers worldwide coverage with customizable plans and 24/7 assistance, making it an excellent option for business travelers heading to different destinations.
   
   Our Take: AXA’s Platinum Plan provides high coverage limits, making it an excellent choice for travelers needing extensive international coverage. It’s particularly advantageous for those traveling to multiple countries or higher-risk regions.

Recommended Coverage Amounts

Bottom Line: Choosing the Right Business Travel Insurance Plan

Investing in the right business travel insurance plan isn’t just about protecting your trip—it’s about safeguarding your livelihood; a disrupted trip could create professional risks. But by understanding your needs, comparing options, and considering factors like coverage limits, policy add-ons, and provider reputation, you can choose a plan that ensures peace of mind and financial security on your next trip.

So, remember to pack your travel insurance policy next time you pack your bags for a work trip. It might just be the most essential item on your travel list—because it cannot be bought once you’re on your journey.