Uninsured Business Travel Risks Your Company Can’t Afford to Overlook

Employers stand to lose a lot of revenue for failed corporate travel missions. This is where travel insurance for business becomes invaluable.

October 16, 2024
Business and Profession, Reliable Cares, Reliable Resources, Safety and Protection

Jobs that require frequent travel involve more than just employees reaching their destinations. Before a sales force can close a deal abroad, a staff can oversee product deliveries, or executives can present to new business partners overseas, part of their work would require dealing with the logistics and hazards of air travel.

Employers don’t always recognize the routine challenges and stress that come with frequent business travel. Yet, it is critical to the employer’s bottom line that employees arrive safe, prepared, and ready to work at their destinations. Protecting employees on these trips ensures they can fulfill their roles without disruptions that could impact the company’s goals.

Common Risks in Business Travel

There could be a number of things that could go wrong during a business trip. Below are the most common challenges that businesses may face:

Travel Delays: Regular delays caused by natural hazards or unforeseen circumstances such as airline system glitches, as had been seen lately. These delays could be disproportionately costly for businesses with very specific and time-bound targets.
Lost Luggage: Lost luggage and checked items are also potential big headaches. Part of the employee baggage could be products for delivery or essential tools needed for the trip’s purpose.
Employee Safety: Travel-related delays can put employee safety and welfare at risk. Without the employee, the business trip would be pointless, and important missions may need to be called off.
Medical Emergencies: Medical evacuations (as in the case of an epidemic breaking out in the work destination, like we saw during the Covid-19 pandemic) and other forms of emergency also require quick assistance, adding stress and potential costs to business travel.

The Role of Travel Insurance in Corporate Planning

Business travel, while it significantly declined during the COVID-19 pandemic, also revealed how important it is to a company. Studies by both Harvard and Oxford Economics confirm how corporate travel spending translates to multiplied revenues: something like a one is to 12 ratio, according to website TravelPerk. Furthermore, employees view travel as an incentive, reinforcing its value as part of corporate strategy.

Part of the protections includes providing safety nets for employees who frequently travel for business. General travel insurance covers many risks, but there are also specialized business travel insurance options that are typically more comprehensive.

Business travel insurance extends these benefits by offering coverage for various travel-related risks. Here’s a look at common provisions:

A medical expenses package: This foremost ensures the wellbeing of the traveling employee, especially during untoward incidents arising at any point of the travel. Provisions such as coverage of business trip expenses due to cancellations for health reasons (such as unexpected sickness of the traveler)
Coverage for multiple trips: The plan could be packaged annually, which is suited to the travel pace and usual back-and-forth flights of business;
Coverage for cancellations and/or interruptions: This avoids setting the company back on additional costs for covering the accommodations, transport, and living expenses of an employee grounded in certain locations;
Lost luggage: This compensates for the estimated worth of the luggage and contents. Airline fine print could also be read to

Minimized Cost for Business Travel

Companies who want to be aggressive in their expansion and sales targets should do their utmost in promoting corporate travel and managing its outcomes. To do this, companies need to maximize business travel benefits by proactively supporting employee travel while mitigating associated risks. To find out more about travel insurance options for businesses, consult with your reliable insurance brokers.