Business travel insurance in Australia. What to know

According to McKinsey, business travel is expected to recover to around 80% of pre-COVID-19 levels by 2024.⁴ As the number of business trips steadily increase, so does the importance of business travel insurance.

This article will explore what business travel insurance is, its benefits, the costs involved, expected coverage payouts, process of making a claim, and other things to keep in mind when purchasing a business travel insurance.

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Business travel insurance in Australia

Business travel insurance offers cover for employees of small to large size Australian businesses that go on domestic and international business trips.

Business travel insurance differs from standard travel insurance. Business travel insurance often includes cover for events specific to business trips, such as alternative employee or resumption of assignment expenses, corporate image protection, weekly injury and sickness benefits, frequent flyer points, and more.

What is usually included in most business travel insurance packages: Benefits of having travel insurance

Having business travel insurance can be beneficial in various ways. Following are a few benefits that are usually included in business travel insurance packages¹:

Medical expenses

Business travel insurance provides cover for any medical expenses you might incur overseas or in Australia, including cover for emergency transportation and evacuation expenses.

Loss of luggage, money and travel documents

• Accidental loss or damage of personal belongings, such as luggage, money, travel documents or business property, is usually covered by business travel insurance.
• Unauthorised use of credit cards is also covered.

Personal injury and sickness benefits

• In case of injury or sickness, you might be able to get income replacement or domestic help.
• The travel insurance might also cover payments for certain surgeries undertaken as a result of injury or sickness.

Alternative employee or resumption of assignment expenses

• If you’re unable to complete the business commitments due to injury or sickness and a substitute employee is sent, some business travel insurance policies offer reimbursement of costs incurred.
• Reimbursement is also offered if you return to complete the assignment after being repatriated.

Missed transportation expenses

Cover for additional expenses incurred from missing the booked transportation due to unforeseen circumstances and having to use alternate transport services.

Rental and private vehicle excess cover

In the event of loss or damage to a rental or private vehicle, you can be reimbursed for the excess fees you’ll be charged.

Corporate image protection

Some travel business insurance policies might offer to cover the costs of engaging external image or public relations consultants to protect against any reputational damage. This benefit usually only comes into play if one or more insured persons have suffered from injuries that are likely to result in accidental death or permanent disablement, which might lead to reputational damage.

Extra territorial workers compensation

If an insured employee suffers from injury or sickness during the business trip, the extra territorial workers compensation will provide the employers a benefit to cover for the compensation that would need to be paid to the injured employees.

The cost of business travel insurance

The cost of your business travel insurance premium depends on several different factors. The travel insurance provider will determine the cost based on the information you provide about the risk to be covered. If risk is determined to be high, the premium cost will also be high.

Some factors taken into consideration are²:

• The business where you’re employed
• The estimated number of international and domestic journeys per year
• The average duration of the trips
• The activities undertaken during the trips
• Benefit limits chosen
• The excess amount you selected when purchasing the policy

Business travel insurance coverage payouts

Business travel insurance payouts differ from provider to provider. Below is a breakdown of the payouts Fast Cover, a well-known provider of travel insurance in Australia, offers for three different packages.³

Benefits	Standard Saver	Comprehensive	Frequent Traveller Saver
Overseas emergency medical & hospital expenses, and 24/7 emergency medical assistance	Unlimited	Unlimited	Unlimited
Overseas emergency evacuation & repatriation	Unlimited	Unlimited	Unlimited
Loss of Income	NA	AUD$10,400	AUD$10,400
Trip cancellation expenses	AUD$25,000	Unlimited	Unlimited
Trip resumption expenses	AUD$2,000	AUD$3,000	AUD$3,000
Personal liability	AUD$25,00,000	AUD$50,00,000	AUD$50,00,000
Luggage & personal effects	AUD$5,000	AUD$15,000	AUD$15,000
Passports, credit cards & credit card fraud	AUD$2,000	AUD$5,000	AUD$5,000
Rental vehicle excess	AUD$500 (optional)	AUD$500 (optional)	AUD$500 (optional)
Travel delay expenses	NA	AUD$2,000	AUD$2,000
Theft of cash	NA	AUD$250	AUD$250
COVID-19 overseas emergency medical, hospital & medical evacuation expenses	Unlimited	Unlimited	Unlimited
COVID-19 trip cancellation & disruption	AUD$3,000	AUD$5,000	AUD$5,000

What to look for in a travel insurance package for business travellers. Useful tips

If you’re shopping around for business travel insurance, you should compare the different providers and plans available before finalising.

Here are some tips on things to look for in a policy.

• Read each insurance policy’s Product Disclosure Statement, which can be found on the provider websites, carefully before making a decision to purchase. These documents have the fine print of all the cover inclusions and exclusions.
• You can choose the type of policy you purchase based on the number of employees going on the business trip. If you only need to arrange travel insurance for one employee, you can go for the basic individual business travel policy. You might want to consider a group policy if there’s a group going on the trip as all of them can be covered under one policy.
• Consider the frequency of your business travels as you can opt for either one-time or annual business travel insurance policy.
• It’s important to be aware of any pre-exisitng medical conditions and submit this information to the insurance provider so that you can get the right policy.
• If you intend to go on personal leisure travels during the business trip, look for insurance policies that cover for it.
• If your family is accompanying you, you could purchase a cover that extends to them.

Making a claim – What you need to know

There are a few things you should be aware of to make a claim.

• Following timeframes is important to make a successful claim. These timeframes can usually be found in the policy’s Product Disclosure Statement. Ideally, a claim should be submitted as soon as possible after the incident.
• All claims need to be supported by evidence and other documentation, depending on the incident. Police reports, doctor’s reports, receipts, transport provider’s reports, valuation of personal belongings, and proof of ownership are some supporting documents that can help your claim.
• You can make a claim with most business travel insurance provider online. Once you have all the information and documents, you simply need to fill in the claims forms and wait for further communications. You also have the options of contacting the provider on the phone, via email or post to make a claim or enquire about the process.

Companies offering business travel insurance in Australia

Australia has a few business travel insurance providers. Some are:

• Fast Cover
• Zurich
• American International Group
• QBE
• Steadfast

FAQs

Is business travel insurance worth it for small businesses?

Yes, business travel insurance is worth it regardless of the size of the business as travel is unpredictable. Also, doing business overseas carries risks as it’s an unfamiliar destination and culture.

Can you get business travel insurance for a single trip?

Yes, business travel insurance providers offer single-trip policies that you can choose the duration for.

How does COVID-19 impact business travel insurance?

COVID-19 has resulted in the addition of benefits such as cover for trip cancellation or delay due to illness and COVID-19 related medical expenses and assistance. Most insurance providers have these benefits but it’s important to read the COVID-19 inclusions and exclusions of each policy before purchase.

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Sources:

1. AIG Corporate Travel Insurance Product Disclosure Statement (PDF) pg. 2-4
2. Zurich Business Travel Insurance Product Disclosure Statement pg. 5
3. Fast Cover Travel Insurance For Business Trips
4. McKinsey Airline sector poised for change post-COVID-19

Sources checked on 15 November 2023