Insurance is always a pertinent concern in any business endeavour, particularly when there’s a high level of inherent risk. Of course, traveling for business purposes presents plenty of negative possibilities that need to be taken into consideration, as all sorts of things can go wrong unexpectedly when you’re in transit e.g. when wandering around an unfamiliar airport or bus station, or finding your way around a new city. Thus, business travel insurance has arisen to fill the gap for professionals that require financial protection while on the road or abroad. With that said, here are 4 specific reasons why many business men and women have begun using these insurance policies:
1. Covering Lost or Damaged Property
Aside from keeping yourself safe at all times, your primary insurance concern for a business trip should be covering company property. Any time you ‘re traveling with business equipment, inventory, or gear (i.e. – a company laptop or specialized tools), there’s a possibility that items could be lost, stolen, or damaged in the process. Although such disastrous outcomes are relatively unlikely, having business travel insurance ensures that you’ll be prepared to avoid unnecessary losses in the event of a rare but potentially costly mishap. However, it’s important to choose a plan with coverage limits that can provide adequate reimbursement for the maximum value of business property that you typically travel with.
2. Covering Expenses Caused by Baggage Delays
Baggage delays are a more common problem for business travelers, frequently causing travellers to go up to 12-24 hours without access to their own luggage. When your bags contain a suit that’s needed for an important conference, or a special tool needed to complete a job, such a delay can force you to make unanticipated purchases to save the trip and ensure business continues as planned (i.e. – buying a new suit or renting a tool). Baggage delay coverage can reimburse you for such expenses that arise due to unexpected delays in receiving your luggage.
3. “Cancel for Work” Coverage
Sometimes emergency work circumstances can force you to cancel a personal trip for business reasons. For example, having to cancel a flight to your family’s house because you were called into work at the last minute. Because this is a common problem, many business travel insurance plans have begun including “Cancel for Work” or trip cancellation coverage to help cover the cost of non-refundable ticket deposits and other lost travel expenses.
4. Safeguarding Against Unnecessary Losses
Finally, avoiding financial losses is the overarching reason why this form of insurance is crucial for any business person who frequently travels. In fact, one could argue that travelling without business insurance poses a potentially existential risk to some small businesses that don’t have an excessive surplus of cash flow to fall back on.
Other Significant Problems Worth Considering
In addition to the common coverage benefits mentioned above, there are also special provisions and plans that cover more rare events such as corporate kidnapping and ransom. This kind of coverage helps companies cover ransom demands in the event an employee is kidnapped and held for ransom overseas.