As countries begin to open their borders, we are starting to see a return to business travel. In increasing numbers Kiwi business travelers are heading overseas to meet suppliers, customers, new prospects, visit offices and often enjoy a well-deserved break at the end of the trip.
During the peak of the global pandemic many travel policies were lapsed for good reason.
It is important to now make sure that you have your business travel insurance back in place.
The Benefits of an Annual Travel Policy
Cost
When you're considering multiple overseas trips in a year, an annual travel policy may be a cost-effective solution.
The Insurely team recently helped set up a business travel policy for a client. Through a direct insurer they were quoted around $400 for two people on a 5 day business trip. Many annual travel policies covering up to 100 days per year of travel are under $1,000.
Less Hassle and Admin
You will not have to remember to arrange insurance for each trip and go through the application process —you can simply book your flights and hotels online and focus on your work without worrying about anything else!
Broad Coverage
Commercial Business Travel wordings are typically broad and have a range of benefits that will help protect you against unexpected expenses such as medical emergencies or lost luggage.
What about Covid 19 and coverage?
Travel insurance providers are gradually relaxing their restrictions on travel following the end of the pandemic, but the cover offered in policies can vary widely. It is important to work with your broker to navigate through these differences and ensure that you are adequately protected.
Throughout the pandemic insurers generally maintained medical cover where an insured contracts Covid-19 when overseas. However there are varying approaches to cover provided under other sections of Business Travel policies for claims due to cancellation, loss of deposits or other expenses etc. due to Covid-19
As of April 2022 Berkshire Hathaway now provide Cancellation and Disruption cover for Covid-19 related events that prevent an Insured Person from commencing or continuing their journey or causes an extension of their Journey as a result of:
The Insured Person’s unexpected death from Covid-19; or
The Insured Person contracting Covid-19; or
The Insured Person being directed by a health authority to quarantine as a result of being deemed a close contact with a positive case of Covid-19.
Note that this does not cover losses/expenses incurred for international/domestic border closures.
With some insurers, Medical Cover may be excluded if the insured is not fully vaccinated (even with a medical exemption)
Does a Business Travel Policy Cover Leisure Travel?
A business travel policy covers you and your staff for business trips. But there's a lot of confusion about whether it will also cover leisure travel, and whether you can get standalone leisure travel cover on top of your existing business trip cover.
The intention of the policy is to provide business travel and incidental leisure travel cover. Insurers in New Zealand are not providing cover for policies that are 100% leisure travel.
As long as there’s intent that the policy is used for business travel, standalone leisure travel can often be undertaken under the same policy (including staff/families etc). Some insurers will provide leisure travel only for Executives and Senior Staff and not all staff members
Practical Advice
Once you do make the decision to go on a trip, there are steps you can take to manage the risks involved.
If you're booking flights, check whether your destination is safe. You can do this by visiting www.safetravel.govt.nz before making other arrangements such as booking accommodation or making plans with friends and family members.
Look at whether it is possible to book cancellable flights and refundable accommodation
Takeaway - You have enough on your plate running a business.
Let our team of experienced brokers at Insurely take care of your business travel insurance needs. We guide our clients on the best coverage, tailored to their needs with full support, all the way through to claim time.
Book a no obligation call with us today at a time that suits you or send us a note below: