Do I Need Specialist Business Travel Insurance?

Do I Need Specialist Business Travel Insurance?

Business travel can raise many additional risks for both business owners and employees.  It is more obvious to firms when employees travel abroad that travel insurance cover is required, however in reality, trips within the UK can also pose equally significant risks.

Why Is Travel Cover Overlooked?

In today’s busy working environment, the key objective of a business trip is completing deals and company objectives, travel risks are often neglected or overlooked, which can lead to unpredictable situations.  A business has a duty of care to the safety and protection of their employees.  Purchasing Business Travel Insurance can help prevent your employees from being left vulnerable when travelling for work.

Employers Liability Risk

As well as travel cover exposures, the heightened risk to employers’ liability insurance claims also needs to be considered.  Should an employee suffer injury in the course of their employment and hold you responsible, you could face legal liability challenges for compensation.

With this is mind, ensure that travel risk assessments are in place to consider the individual risks of your business, including:

  • Trips to high risk countries or locations
  • Hotel & accommodation policy
  • Mobile phone use whilst driving
  • Driving policy (including suggested maximum driving period before taking a break)

Business Travel Insurance

In order to account for the various risks of doing business while travelling, most insurers offer comprehensive, flexible Business Travel Insurance policies. Cover can be tailored to fit business’ individual needs, such as offering single trip, multi-trip and annual covers. Business travel cover may also be arranged under a standard travel policy, depending on the trip’s purpose and risk profile.

What Are The Key Risks?

The risks of business travel are numerous and can vary according to destination, time of year, the nature of the trip and activities planned, among other things. Some general risks include:

  • Cancelling due to illness
  • Curtailing the trip for any reason
  • Becoming ill and requiring medical treatment
  • Sustaining injuries or hurting someone else accidentally
  • Losing luggage, money or identification
  • Exposing yourself or your employees to an increased risk of injury or death, depending on the destination
  • Suffering delays due to severe weather

These are just some of the risks that your business may be exposed too. Your firms risk assessment should factor in individual exposures in more detail.

Types of Travel Cover

Because the risks of business travel are so diverse, Business Travel Insurance consists of varying types of cover, each for a specific risk. The following are six common types of cover available in a business travel insurance policy:

#1 Cancellation and curtailment

Cancellation and curtailment provides cover if you or your employees have to cancel the trip or cut it short due to death, injury, illness, jury service, etc.

#2 Property and Money

Money and personal property covers the personal possessions and money of your employees against accidental loss, theft or damage.

#3 Medical Costs and Expenses

Medical expenses cover protects against fees relating to hospital, medical and ambulance bills which may be incurred travelling.

#4 Personal Accident

Personal accident cover pays a cash sum in the event of accidental bodily injury which results in the insured’s death, loss of limb(s), loss of sight or permanent total disablement.

#5 Missed Departure

Missed departure and delayed travel insures expenses resulting from the failure of public transport, mechanical failure or an accident involving private transport, strike, industrial action, adverse weather conditions or another road accident causing delays.

Personal liability and legal expenses cover helps pay damages and legal expenses if your business is found to be liable for a third party’s injury, loss or damage.

#7 Extensions To Cover

More specific extensions to cover are required, taking into account some of the following more specific risks:

  • Hijacking
  • Kidnap and Ransom
  • Financial failure of a scheduled airline
  • Resumption of trip expenses
  • Natural disaster
  • Personal Assault and / or Mugging

The more extensions you purchase to complement your policy, the better you can protect your employees and ensure peace of mind for the business and your staff.

Typical Policy Exclusions

Certain activities and situations will probably never be covered by a business travel policy. Exclusions vary amongst specific insurers, but they typically refuse to pay claims in the event of:

  • War
  • Radiation and contamination
  • Criminal actions
  • Terrorism
  • Winter sports
  • Extreme sports
  • Flying, unless as a fare-paying passenger
  • Travelling against medical advice
  • Pregnancy-related claims such as travelling within eight weeks of a due date

FREE Business Insurance Review

Insync specialises in cover for small to medium sized businesses across the UK.  We can tailor Business Insurance Quotes to your specific requirements, helping you to identify your key exposures and arrange appropriate cover for your exacting needs.

Request a quotation online, alternatively, why not book a free review with our of our expert Gurus at a time that suits YOUR diary.