What is business travel insurance?

Unexpected problems can arise during business trips. If you or your employees travel regularly for meetings, special events or other business tasks, travel insurance can be a worthwhile investment. Read on for a guide to what this type of insurance covers and how it benefits businesses.

What exactly is business travel insurance?

Business travel insurance is one of the most important types of business insurance for frequent travelers. Numerous types of plans are available, so coverage varies. However, it generally covers unexpected issues that arise during travel.

How does corporate travel insurance work?

Business travelers often incur unexpected costs such as medical care, evacuation or lost or damaged belongings. Travel insurance covers many of these costs to keep costs predictable for businesses. Business travel insurance can usually be taken out when booking a trip or a few weeks before departure. However, some providers offer annual policies for those who travel frequently.

Why business travelers should take out travel insurance

Many business travelers incur unexpected expenses when traveling. Here are some ways business travel insurance benefits users:

Reduce financial losses: Even one serious problem that arises during a trip can result in major costs for a company. Insurance can reduce the overall cost to a business by avoiding the need to cover things like medical evacuations or lost equipment. Keep costs predictable: While business travel insurance increases the cost of any trip, it is paid upfront and at a rate that’s easy to budget. This makes planning business expenses easier throughout the year, rather than waiting for unexpected travel hassles. Stay flexible: Many business travel insurance plans include cancellation coverage. This allows your company to reschedule trips if something else comes up that is more beneficial.Improve travel safety: Many plan details also cover medical care or evacuation. This can improve the health and safety of your team while traveling.Give peace of mind: Even if nothing serious happens, knowing you’re covered can reduce stress and make business travelers more comfortable.

What is covered by small business travel insurance?

The insurance for business travelers can differ per subscription and provider. However, there are several main categories that are often included.

Cancel trip

Trip cancellations made within the allotted time period and for a covered reason are refundable with this type of coverage. For example, if the event you were traveling for is cancelled, you don’t have to worry about refunding the fare.

Medical care

Medical costs can add up, especially when traveling. If you or a team member needs emergency medical care or medical evacuation during a trip, this type of coverage should come in handy, especially in areas not covered by traditional medical insurance.


Disruptions such as flight cancellations or lost baggage may require additional hotel stays or purchases. Your insurance plan can cover these additional costs, as long as they are the result of unmanageable issues such as canceled flights.

Business equipment

If you travel with expensive business equipment, loss or damage may be covered by business travel insurance. For example, if the samples you take to a trade show are lost by the airline, travel insurance may pay out to replace them.


If business travelers have to be evacuated because of an extreme weather event, a terrorist attack, or some other uncontrollable problem, many plans involve reaching a safe location.

What is not covered by business travel insurance?

Plans vary, but here are common costs that are generally not included in insurance for business travelers:

Pre-existing medical conditions Disasters or pandemics known before you book Missed flightsFlights purchased with loyalty points

How much does business travel insurance cost?

Business travel insurance costs vary based on the cost and location of each trip, but many fall around 5 percent of the total travel cost. Certain destinations where medical care or evacuation incur additional costs may incur additional costs, and companies traveling with expensive equipment may also pay more for policies.

How to choose the best travel insurance for business trips

The best business travel insurance depends on your company’s needs and budget. However, here’s a guide to help you get the most relevant coverage.

Consider the type of travel: Domestic and international travel involves different concerns. For example, you may be more concerned about medical coverage for international travel if your medical insurance does not cover care abroad. Add up the number of business trips: If you take several trips a year, consider annual travel insurance to avoid paying separately for each Weigh your biggest concerns: If you’re on a tight budget, you may have to choose between flight delay coverage or lost equipment. Consider what is most likely to happen or what would cost your business more. Look at coverage limits: policies have maximum limits on what they will reimburse for each category. If you are traveling with expensive equipment, make sure your policy reimburses the full amount if it is lost or damaged. Find 24-hour emergency services: If your provider has an administration office that’s always available to answer questions, you’re more likely to get the coverage you need quickly.

How to get travel insurance for your business

If you’re ready to buy insurance for your next business trip, here’s how:

Book your trip: Most travel insurance policies are booked for a specific trip. And the costs are calculated on the basis of the agreements. If you are looking for annual travel insurance, skip this step. Find a provider: Your business insurer may offer travel insurance, so check with them first. Other major travel insurance providers include Allianz Travel Insurance products, Generali Global Assistance, Nationwide, and The Hartford. Consider coverage options: These providers may offer different types of plans for different expenses, such as emergency evacuation or layover, so keep your top concerns in mind when selecting a plan. Compare quotes: You can also compare providers or plans based on your budget. Tools like TravelInsurance.com make it easy to compare rates.

Does travel insurance cover bankruptcy?

If an airline, accommodation or travel company goes bankrupt after you book with them, the costs may be covered by travel insurance. However, the company must be a covered provider through your insurance company.

When should you take out business travel insurance?

Take out business travel insurance as soon as possible after booking a trip. This ensures that changes or cancellations are covered – you will not be able to get a refund if you purchase travel insurance after these changes have been made. In most cases it is sufficient to take out insurance at least two weeks before a trip.

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