Business travel insurance reimburses unexpected expenses or financial losses incurred before or during a work trip. It covers trip cancellation/interruption, medical costs, lost baggage, travel delays, lodging expenses, and more. The cost of business travel insurance is usually between 5 and 7 percent of the total trip expense.
How does business travel insurance work?
Business travel insurance, also known as corporate travel insurance or business trip insurance, is designed to provide comprehensive protection against unexpected incidents and expenses that can occur during a business trip. It can be purchased as a single-trip policy or an annual/multi-trip policy.
What does business travel insurance cover?
A standard business travel insurance policy typically covers trip cancellation/interruption costs, travel delays, medical bills, lost baggage, car rental and lodging expenses. However, it does not cover reasonably foreseen events, acts of war, declared epidemics and pandemics, or travel restrictions imposed by a government entity.
Who should get business travel insurance?
Business travel insurance is recommended for individuals who frequently travel for work and are not already covered by their employer. It is typically targeted at independent contractors and small business owners.
Examples of business travel insurance coverage
Business travel insurance can be beneficial in various scenarios. It can cover expenses in case of trip cancellation, medical emergencies, and baggage delays. For example:
- Trip cancellation: If a family emergency arises and you need to cancel your trip, a business travel insurance policy can reimburse your non-refundable expenses.
- Medical emergency: If you fall ill during a business trip and require medical attention, business travel insurance can cover your medical expenses.
- Baggage delay: If your luggage gets lost or delayed, business travel insurance can cover the expenses you incur for clothing, medicine, and toiletries.
The average cost of business travel insurance
Business travel insurance policies typically cost between 5 and 7 percent of the total trip cost. The exact cost depends on factors such as the type of policy, destination, coverage inclusions, and the traveler’s age. It’s important to carefully review policy details and premium quotes to select the right plan.
Do credit cards offer business travel insurance?
Some business credit cards provide free business travel insurance as long as eligible travel expenses are paid using the card. This coverage usually includes trip interruption/cancellation, accidental death and dismemberment, and rental car loss/damage. It’s important to understand the limits of coverage provided by credit cards and compare them to standalone insurance policies.
The bottom line
Business travel insurance is worth considering if you travel frequently for work, especially if you don’t have coverage from your employer or credit card. However, it’s essential to read the policy’s fine print to understand what is covered and what is excluded.