Understanding corporate travel insurance

Corporate travel insurance is for employers traveling abroad because of work.

10:16 05 July 2013

Employers who are sending employees abroad for work should seriously consider taking out corporate travel insurance. This protects both the employers and employees should unforeseen events take place. Comprehensive corporate travel insurance usually cover medical attention, trip cancellation, lost baggage, etc.

Why is this important?

Employees who are sent abroad for work are the responsibility of their employers. Should these employees get into an accident for example, they can sue for damages. However, employers can be saved from such liability by simply taking out corporate travel insurance.

With this type of insurance, the employer is usually the policyholder and his or her employees are the beneficiaries. Compared to regular travel insurance, corporate travel insurance usually cover more risks and is usually tailor-fit based on the specific needs of employees. For example, if the business traveller is working for mining company, the policy will include accidents while he or she is in the mining site.

Corporate travel insurance is generally more expensive compared to regular travel policies, however, they are more comprehensive and offer different special coverage to meet the needs and demands of clients.