Product Fundamentals: Corporate Travel Insurance

Corporate Travel is an insurance product developed for organisations whose directors and employees travel for, or on behalf of the company. This product ultimately protects the beneficiaries against financial disruption, accidental sickness or illness that may arise due to travelling interstate or internationally.

The cover provided by a corporate travel policy applies for losses occurring during the policy period and is limited by the journey description noted on the policy schedule. As such, these policies are occurrence based as opposed to claims made, meaning claims may only be made within the policy period.

Coverage is available for all directors, employees, contractors, and consultants of the insured company who travel during the policy period for business purposes. This includes accompanying spouse/partner and dependent children. Coverage may be extended to business owners or directors and their families for non-business related (leisure) travel.

Travellers covered under corporate travel policies will often be provided with access to an emergency assistance provider arranged by the Insurer, should one be required due to an emergency arising whilst travelling. This service is usually available 24/7, anywhere around the world and does not incur extra fees.

The COVID-19 pandemic has changed travel significantly. At the end of 2021 the majority of insurers released advice that a travel insurance policy will respond to illness and injury related to COVID-19 in the same way as any other sickness.

For further information on claims relating to COVID-19, please see our article here.

In the event of a claim, the insurer will require written proof of any loss suffered. Proof may include copies of travel documentation such as certificates or receipts. If the insured is unable to meet these requirements, it is likely settlement will be delayed or unsuccessful.

We recommend preparation prior to travel which may assist in the event of a claim. This can include taking photos of luggage and high value items prior to departure and having any travel documentation filed electronically and accessible whilst travelling. It is also advisable for businesses to compose a set of guidelines, with reference to relevant policy conditions, for employees travelling under their policy to ensure appropriate action following an insured event.

An Australian Insured that had offices in multiple locations around the world had an employee taken sick on arrival in Medellin, Colombia.  The employee had suspected influenza and could not make the onward journey to Panama City and then on to Belo Horizonte in Brazil as scheduled until such time as their health improved. This resulted in a week of rest in a Medellin Hotel. In addition to the policyholder’s illness, his bag was also lost.

Insurers subsequently agreed to pay for the additional hotel nights incurred in Medellin as well as some new clothes, toiletries and a bag as the insured was without such items following the loss of his luggage. Insurers also paid for some general medication, a visit to a local private doctor and the cost of a Covid test. Insurers paid for additional food in excess of the original scheduled stay.

As far as flights and hotels were concerned, the cost paid by Insurers was relatively modest as most of the items could be re-booked in time but in one instance where that was not possible, the Insurer paid for one new flight.

The sickness and delay of the insured caused another colleague travelling separately to be delayed by two days for an important meeting and insurers paid expenses incurred for that person to wait for the delayed colleague and conduct the meeting at a later time.

For further information on corporate travel insurance or to obtain a quote, please contact us via the form below.