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Similar to personal travel insurance, business travel insurance helps to mitigate risks of lost funds and financial challenges that might occur while traveling. Depending on your circumstances, business travel insurance could be a wise investment.

The one instance where you might be wasting your money when purchasing travel insurance is if you work for an organization as an employee or contractor that secures insurance that covers any travel risk related to your business travel. In other words, it’s not uncommon for the following not to be covered by your company’s policy:

Lost, stolen, or damaged personal belongings and luggage
Medical bills if you get sick or hurt during a nondomestic trip
Personal travel time added to your trip
Trip interruption in the event you must unexpectedly cut your trip short due to an emergency back home

If you’re unsure what your company’s business travel insurance covers, be sure to ask your manager or the department that oversees business travel. For the components not covered by the company’s insurance, you can purchase your own travel insurance to fill in any gaps.

Also, if you are self-employed, you’re the one responsible for purchasing your own business travel insurance to ensure you’re protected. If you don’t, you risk losing a fair amount of money should unexpected events disrupt your travel plans.

Type of Business Travel Insurance Coverage Options

There are several types of business travel insurance options to consider, as outlined below.

Trip Cancellation Insurance

If you’re footing the bill for your business trip, then trip cancellation insurance is a wise investment. Trip cancellation insurance kicks in if you must cancel your trip for a reason covered within your policy. To ensure all reasons you have to cancel a trip are covered, you’ll need to purchase a “cancel for any reason” (CFAR) policy.

Trip Interruption Insurance

When your trip gets cut short unexpectedly for qualifying reasons, trip interruption insurance can help cover the cost of a coach ticket, transportation to and from the airport, and any forfeited costs you’ve paid for in advance. As with other policies, exclusions typically apply unless you upgrade to an “interruption for any reason” (IFAR) policy.

Travel Delay Insurance

Let’s say your travel plans are delayed for some reason, like one of your flight legs being canceled due to a natural disaster. In this type of situation, travel delay insurance can kick in and cover expenses related to the delay, like lodging and meals. Qualifying reasons for a delay will be listed in your policy, as well as the maximum amount allotted for expenses and the waiting period required before it kicks in, typically a few hours after the trip commences.

Missed Connection Travel Insurance

If you have a direct fight, this type of insurance isn’t necessary. Missed connection insurance covers the costs associated with a leg of your trip being canceled. Look for a policy that covers all aspects of your travel, and not just cruises and tours, as many policies do.

Baggage Insurance

Baggage insurance helps to cover lost, stolen or damaged luggage and its contents. It can also cover lost or stolen personal items during your trip. Policies often have exclusions and are considered secondary to airline and homeowner insurance claim reimbursement.

Baggage delay insurance provides reimbursement for items you might need to purchase due to your baggage being delayed.

Medical Expense Travel Insurance

Most domestic health insurance plans do not cover medical expenses overseas. So, if you get sick or injured while traveling internationally, you’ll be thankful you have medical travel insurance.

Emergency medical, medical evacuation, medical treatment, medical tests and labs, and hospitalization are options for coverage under medical expense travel insurance. You can also purchase a pre-existing medical condition exclusion waiver that covers pre-existing conditions that might flare up while traveling.

Finding the Best Travel Insurance Plans for Your Needs

Many comprehensive travel insurance options include business travel expenses, making them suitable for both personal and business travel. Here are five considerations when purchasing business travel insurance.

If applicable, confirm the gaps in your company’s business insurance policy to determine what additional policy coverage you might need to purchase for comprehensive coverage.
Be sure to read any exclusions that apply within each policy and purchase upgrades or add-ons where necessary – business equipment, for example, is often excluded, so you might need to purchase loss or delay of business equipment upgrade.
Determine what international travel medical expenses are covered by your current medical plan, if any, so you can purchase insurance to fill in coverage gaps.
Reach out to your credit card issuers to determine if your credit card includes travel insurance and take advantage of it. Note: These policies are generally free to the cardholder, though you might need to upgrade or purchase add-ons for comprehensive coverage.
Look around and do research to find the policies with the best rates that meet your needs.

Companies that Offer Travel Insurance

Many insurance companies offer travel insurance, including:

You can also use sites that aggregate options from insurers, which makes it easier to compare quotes and plans, including:

Some Final Words on Purchasing Business Travel Insurance

To summarize, those who might need to purchase business travel insurance include individuals:

Traveling internationally
Not covered or fully covered by a company policy
Who are self-employed
Adding a personal or leisure travel to the trip

It’s best to purchase travel insurance when you make the first deposit for your trip. Upgrades and waivers you might choose to purchase typically need to be added within 14 to 21 days of booking.

From a cost perspective, Forbes Advisor reports that the average cost of travel insurance is 5% to 6% of the trip costs and is dependent upon the total cost of your trip. Generally, the cost is worth it—once you purchase business travel insurance, you can rest more easily, knowing you’re protected from losing funds related to events that might impact your trip before and during travel.

Resource (not linked): https://www.forbes.com/advisor/travel-insurance/business-travelers/

How to Buy Business Travel Insurance