What is business travel insurance and what does it cover?

Travelling can be stressful, and even more so if it’s a business trip. 

However, it pays to be prepared, which is why you should consider business travel insurance in case the unexpected happens. 

We reveal what business travel insurance is, what it covers, the exclusions and benefits. 

Summary 

• Business travel insurance covers employees when they travel overseas for work. 

• It covers a range of things, such as medical treatment and damage to business equipment. 

• However, you may have to pay extra for add-ons, and there are exclusions to consider.  

What is business travel insurance?  

Business travel insurance is similar to a standard travel insurance policy, but instead of covering your holiday travel, it covers your business trip overseas. 

Alongside covering standard issues that can arise, such as flight cancellations and lost luggage, business travel insurance can also offer extra add-ons not covered by a standard policy. 

These can include cover for specialist equipment and goods and even sending out another colleague if you have to cancel or return home early. 

If you’re employed, it’s worth checking with your employer if they will arrange business travel insurance on your behalf. 

However, if you're self-employed, you’re responsible for arranging your insurance unless it’s covered with a product you already have, such as a packaged bank account.  

You should ensure your business travel insurance covers everything you need and that you declare any pre-existing conditions. 

An insurance broker may be able to help you find the best policy for your unique circumstances. 

What are the different types of business travel insurance? 

You should ensure you choose business travel insurance to cover your destination. 

The two main types of business travel insurance are: 

• European travel insurance 

• Worldwide travel insurance 

Similar to a standard travel insurance policy, you can choose one that covers a single trip or multiple trips. 

If you’re planning one business trip in a year, a single-trip policy is worth considering as it’ll likely be cheaper. 

However, a multi-trip policy is likely better value if you plan to travel abroad multiple times a year. 

You can also get a policy for yourself, two people, your family, or a larger group if you plan to travel with your colleagues. 

When looking for business travel insurance, make sure you understand how long your trip is covered for – if you’re spending a long time abroad, you don’t want to get caught out.  

What is covered by business travel insurance? 

Business travel insurance covers you for a range of things while you work overseas, including:  

• Medical expenses: If you’re ill while overseas, your treatment and travel back home should be covered if necessary. 

• Cancellations or ending your trip early: If you have to cancel your trip, end it early, or a work event is cancelled, you should be covered for pre-paid expenses, including flights and accommodation.  

• Loss, theft, or damage to work items or business equipment: This includes a range of items, such as your laptop and business equipment, samples, and merchandise. You should check if your policy will reimburse anything lost, stolen, or damaged or if equipment hire is included.  

• Company money: You may be covered for lost or stolen money such as cash, cheques, and pre-paid cards. 

• A replacement colleague: If you have to cancel or end a trip early, some insurance policies may cover the cost of sending out a colleague to cover the business trip.  

• Legal fees: If you’re not at fault for an incident you’re involved in, your legal fees may be covered. 

Some insurance policies may also cover you for missing any flights, losing important travel documents, such as your passport, or for trips within the UK.  

Remember, all the above features may not be included as standard, so you may have to pay extra.  

It’s a good idea to check the fine print of any insurance policy to make sure you’re covered, whatever happens.  

Are there any exclusions with business travel insurance? 

There are some exclusions you should be aware of before buying a policy, such as: 

• Illegal activities and intoxication: If you break the law or have claims resulting from drinking or drug taking, you won’t be covered. 

• High-risk activities: Many high-risk activities, such as extreme sports, won’t be automatically covered; however, it may be an optional add-on.  

• Personal possessions: Your items might not be covered by business travel insurance; however, you may be able to pay for additional cover to protect your possessions.  

• Undeclared pre-existing medical conditions: If a health issue isn’t declared and you need to claim, you might not be covered.  

• Travelling against Foreign Office advice: If the Foreign Commonwealth and Development Office (FCDO) advises against travelling to a destination and you do, you won’t be covered. 

How much does business travel insurance cost? 

The cost of business travel insurance varies, depending on many factors. 

According to Confused.com, the cheapest single-trip policy is £2.50, while the most affordable annual multi-trip policy is £11.85 – but the latter is for a healthy 30-year-old travelling to Europe. 

Factors that determine whether you pay more for business travel insurance are: 

• Your age: Typically, the younger you are, the cheaper your policy will be. 

• Your destination: European cover usually costs less than the worldwide cover. 

• How long your trip is: The longer you’re travelling, the more expensive it will be. 

• Any pre-existing conditions: If you have a health condition, you’ll typically pay more. 

• Planned activities: Higher-risk activities may require you to pay more.  

• Any add-ons: If you need to add cover for your belongings or extreme sports, it’ll be more expensive.  

What are the benefits of business travel insurance? 

Business travel insurance can benefit employees and employers by ensuring that anyone covered can get medical treatment while overseas and be safely repatriated if extra care is required. 

It can also protect employers from losing out financially if equipment is damaged, lost or stolen, or their employee misses their flight, or it’s delayed. 

Essentially, business travel insurance offers peace of mind if the unexpected happens. 

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