Business travel insurance that covers your team and your bottom line
Travel insurance is a must-have for any trip, but when your business is responsible for duty of care, it’s non-negotiable. Whether your employees are jetting off for a conference or sealing deals overseas, having the right travel insurance can make all the difference.
Why business travel insurance is a no-brainer
Sure, business trips might seem lower risk than adventure holidays with skydiving or whitewater rafting on the itinerary, but that doesn’t mean they’re risk-free. Flight delays, lost luggage, medical emergencies, or last-minute cancellations can still throw a spanner in the works.
And here’s the kicker: your travellers won’t have Medicare or their private health cover when travelling overseas. So, it's essential to keep them protected and safe with travel insurance.
Does business travel insurance cover all destinations?
If you’ve got an annual business travel insurance policy, you’re covered for multiple trips throughout the year, but there’s a catch. Each trip has a maximum duration limit, so be sure to check how long you’re covered.
Business travel insurance doesn’t automatically apply to every destination either. Coverage can depend on government travel advisories, and these can change fast. If a country gets flagged with a high-risk warning, your policy might not cover travel there. That’s why it pays to keep an eye on updates from the Department of Foreign Affairs and Trade or Smartraveller.
Another must-check is whether your policy includes trip cancellations and unexpected disruptions. A little fine print reading now could save your business a whole lot of hassle (and money) later.
International travel insurance that has your back
A business traveller is just as likely to get hit crossing the street in Sydney CBD as in New York. The real difference? The healthcare bill.
The USA isn't the only country with expensive healthcare. A one-night stay in a hospital in Monaco is $3,444 per day, compared to one night in a five-star hotel at $1,060 (ouch!). Luxembourg, Norway, Qatar, and Switzerland made up the remainder of the top 5 most expensive countries for healthcare according to Finder.
MEDICAL CLAIM: A Cover-More Travel Insurance customer on a business trip was in a head-on car accident in Yosemite National Park, USA. They suffered internal injuries and a fractured spine, requiring surgery. Hospitalised for over four weeks before they could be brought home, their medical bill came to a staggering $570,000.
It’s not just medical costs. Travel insurance can also cover lost or delayed luggage, stolen money, missing travel documents, kidnap and ransom, loss of income, and more.
CANCELLATION CLAIM: A Cover-More business customer had to cancel their trip after suffering a Transient Ischaemic Attack (stroke-like episode). The cost of cancelling? $47,000.
LUGGAGE CLAIM: A business traveller in Germany was all set to head home until their bag went missing from their hotel. Despite efforts to track it down, it was gone for good. The claim was approximately $5,500.
Domestic travel insurance still matters
Your team might have Medicare on their side when travelling around Australia for business, but that doesn’t mean they’re covered for everything.
Picture this: your traveller’s all set for their trip, then boom! A family emergency grounds them. Or worse, they arrive only to find their luggage (and the clothes they need for that big presentation) gone.
CANCELLATION CLAIM: A Cover-More corporate customer had to cancel their trip after suffering a spontaneous subarachnoid haemorrhage, requiring hospitalisation and further investigation. Total claim? $20,000.
LUGGAGE CLAIM: A business traveller was driving from Brisbane to Adelaide via the Flinders Ranges, towing a camper trailer filled with their belongings. A truck driver flagged them down as flames were coming from under the vehicle. The car and trailer went up in smoke, along with everything inside. The insurance claim came to $13,500.
Not all travel insurance is created equal
With so many travel insurance options out there, picking the right one for your business trip can feel like a guessing game. But here’s the thing: many SMEs don’t realise there are policies designed specifically for businesses.
Let’s break it down: general, business, and corporate travel insurance. What’s the difference, and which one do you actually need?
General travel insurance: Great for holidays, not so great for business
General travel insurance (aka the policy you grab for your next holiday) is built for adventure, spontaneity, and leisure. Think snowboarding, scuba diving, and all those bucket-list activities you’d probably skip on a business trip (at least, we’d hope).
These policies are usually one-off purchases unless you're a frequent flyer and opt for an Annual Multi-Trip plan. You can also tack on extra coverage depending on the type of trip you’re taking.
What general policies don't provide are the business-focused perks that protect your business from potential travel risks. If you're sending employees on the road, it’s worth looking into a business or corporate travel insurance policy to make sure both your people and your business are covered.
Business travel insurance: The go-to for frequent flyers
Think of a business travel insurance policy like an Annual Multi-Trip plan, but built for business travellers. Bonus: You can add your spouse and kids to the policy too.
It’s a set-and-forget option for regular travellers who need ongoing coverage without the hassle of booking insurance for every trip. Just keep in mind that it’s per person (or family) and needs to be renewed annually.
Corporate travel insurance: The all-in-one solution for company-wide coverage
If managing individual travel policies sounds like too much admin (because let’s be real, it can be), corporate travel insurance policies are the no-fuss solution.
Work with a travel insurance provider or your travel manager to lock in a tailored policy for your business. Once it’s set up, your travellers are covered. No need for them to book separate policies every time they fly.
Corporate policies offer broader coverage than standard business policies, but they do come at a higher cost. So, weigh up the options and make sure you're getting the best fit for your business.
Business travel insurance: What’s NOT covered
Not everything makes the cut when it comes to business travel insurance. Some things are too high-risk, while others are off-limits due to legal rules.
For example, by Australian law, travel insurance can’t cover medical expenses for domestic trips unless you’re on a cruise. Yep, even if you’re flying across the country, Medicare’s got you covered instead. Here are some other important exclusions to keep in mind.
Pregnancy
Travel insurers won’t cover childbirth or related costs. Why? Because delivering a baby overseas can be VERY expensive, and the further along someone is, the higher the risk of an unexpected arrival mid-trip.
If a business traveller is pregnant, check your policy for restrictions on the gestational period to see if they're covered on their trip.
Alcohol-related incidents
Client drinks? Totally fine. One too many and a risky move? That’s on them.
Most travel insurers won’t pay out claims if intoxication was a factor. So, if your employee has a few too many, jaywalks across a busy street, and gets hit by a car, they’re likely not covered because their booze-fuelled decision upped the risk.
Reasonable care
If a traveller is careless, insurance won’t cover the consequences. Claims linked to negligence, whether it’s lost luggage, theft, property damage, injury, or death, are likely to be denied. What counts as reasonable care depends on the situation.
For example, if a traveller leaves their luggage unattended outside the airport bathroom, that’s not reasonable care. If they’re at a café and leave their wallet on the table while they step away, that’s on them too.
Before sending your team off, check the general exclusions list and the Product Disclosure Statement (PDS). A quick read now could save your business thousands later.
What your travellers need to know before they go
Before your team jets off, make sure they’ve got these essentials locked and loaded:
- Business or Corporate Insurance Policy number
- 24/7 emergency contacts, including your travel insurance provider and Corporate Traveller
- A clear grasp of the company travel policy—do they know what they can/can’t do if they expect to be covered?
- An understanding of their insurance coverage and what to do if things go south
A little prep now means fewer hiccups later.
About Flight Centre Travel Group
The Flight Centre Travel Group is one of the world’s largest travel retailers and corporate travel managers. The company, which is headquartered in Brisbane, Australia, has company-owned leisure and corporate travel business in dozens of countries, spanning Australia, New Zealand, the Americas, Europe, the United Kingdom, South Africa, the United Arab Emirates, and Asia. ASX listed Flight Centre Travel Group (FLT) also operates the global FCM corporate travel management network, which extends to more than 100 countries through company-owned businesses and independent licensees, along with Corporate Traveller, the flagship business specific to the small-to-medium-sized enterprise sector. For more information, visit fctgl.com.
Chat with your travel manager about duty of care and travel insurance
Your Corporate Traveller travel manager can help you tick the duty of care box and find the best insurance solution for your business.
The health and wellbeing of your employees come first, so don’t wing it. Ask the experts and get the right cover sorted today.
