Travel insurance for work trips: ins and outs

Travel insurance

For most, business trips are exciting. They’re a great opportunity to step up, grow professionally and engage with new and refreshing topics. As well as this, if you’re travelling internationally, it’s usually a great chance to explore a new part of the world.

However, when you’re heading overseas for work and you have a hectic schedule full of meetings, the last thing you want is to be hit with flight delays, cancelled accommodation or any other travel issues. Luckily enough, travel insurance is designed to help cover the costs of any unexpected events that may arise, even when you’re travelling for work. So what do you need to know about travel insurance for business trips?

What’s included in your policy?

This depends on the level of cover that you or your employer choose to take out. A typical policy will include cover for certain unexpected events such as flight delays, baggage loss, accommodation cancellation or any activities that you’ve paid for that are cancelled for an unforeseen reason.

Some business travel insurance policies also include various business-specific additions such as:

  • Cover for laptops or other work-related belongings: This may not be exclusive to a business travel insurance policy, but you can choose to insure certain belongings up to a certain limit during your trip in case they are stolen or damaged.
  • Corporate traveller family care benefits: This is an optional extra offered with some policies. It provides a range of benefits in the event that any unforeseen issues occur involving the policyholder’s family while the policyholder is away. This can include cover for accidental spousal death, education fund supplements or a spouse retraining benefit.
  • Cover for loss of income: Some travel insurance brands will provide this as part of their business travel insurance policy options.
  • Extra territorial workers compensation: This provides employers with a personal liability benefit, which covers any employee accidents that occur on a business trip.

Who pays for it?

Sorting out who pays for your business travel insurance is something that should be discussed with your employer. Some businesses feel obliged to supply cover and may purchase travel insurance in bulk in order to cut costs. Others may take the position that they have no obligation to provide you with insurance. If your employer is reluctant to pay, you may have to source your own cover, but remember that you should be able to claim your premiums as a tax deduction.

Will business travel insurance cover flight delays?

Most travel insurance policies will provide cover for flight delays under certain circumstances. For example, the delay usually has to be unforeseen and last for over six hours. If you can, try to avoid delays where possible. Australia’s Bureau of Infrastructure, Transport and Regional Economics annually releases a performance report on Australia’s domestic airports and airlines, which allows you to see which airlines cause the most delays. If your flight is cancelled altogether, the airline is typically responsible for providing reimbursement or compensation.

What about domestic trips?

Not everyone considers the importance of travel insurance when travelling domestically, but it’s still important. Especially where extra costs for things like flights and accommodation are involved, it’s always a good idea to have some level of cover in case something goes wrong.

Anything else?

To get the best value for money make sure you compare policies before you decide on one, so that you know you’re receiving the most bang for your buck. Enjoy your trip!


About the author

Richard Laycock is an Insurance Expert at financial comparison website finder.com.au.