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Corporate Business Travel Insurance 

Why the need for corporate business travel insurance?

Corporate business travel insurance policies are designed to satisfy an employer’s need of providing protection for employees who are exposed to additional risks by travelling on behalf of the company.

HR “Duty of Care legal requirements"

  • An employer is obliged to insure, so far as reasonably practicable, the health, safety and welfare of its employees, and other persons.
  • Failure to do so can result in the liability of the employer, its directors and/or senior managers

Benefits included under the corporate business travel insurance policy are payable in addition to any other group or individual plan and in most cases satisfies legislative compliance (OH&S and common Law) to protect a company’s “Duty of Care".

Who is covered under a corporate business travel policy?

Eligibility is usually extended to include all executives, employees and accompanying dependents of the company or designated classes of employees on business travel.

Coverage may also be extended to non-employee directors, consultants and guests of the policy holder.

Individuals are not named and any benefit payable for personal injury is payable to the company/policy holder.

Business only coverage is activated once the employee leaves his/her regular premises of employment or their residence on company business and continues until they return to either, whichever occurs first.

Separately, coverage for Officers of the company, Directors, CEO, CFO, COO, General Managers and company Secretaries of the insured including any accompanying spouse/partner and dependent children and other key employees, can be extended to full business and leisure travel. This broadens the coverage to include vacations, travelling to and from work, and while at home.

Scope of Cover

Corporate business travel policies are designed to provide cover against the unexpected only whilst travelling on company business. They provide benefits that relate to problems likely to be experienced by a business traveler during a business trip.

The 21st century global workforce lends itself not only to political unrest and terrorism exposures but also to geographical catastrophe. Not all corporate travel policies cover these exposures. Some policies have very onerous exclusions such as pre-existing conditions, war & terrorism, political risk, (civil unrest, hostilities, rebellion etc.), HIV/AIDS, pregnancy and age limits, to mention but a few.

Benefits normally provided in a comprehensive Corporate Travel Policy:

Lump sum Insured Accidental death
Limited to 7 times salary or the sum insured whichever is the lesser
For Non-Income earners limited to $250,000 or the sum insured whichever is the lesser

  • Permanent total disablement
  • Exposure to the elements
  • Disappearance- sinking or wrecking of conveyance
  • Weekly Accident Benefit
  • Weekly Illness Benefit
  • Medical expenses
  • Emergency evacuation
  • Denture replacement or repair

Additional benefits through the Emergency Assistance company appointed by insurer.

1) Pre-travel advice on matters relating to health;

2) Case management if hospitalised;

3) Emergency assistance worldwide- toll free number;

4) Arrangement for transport by road, aircraft or special air ambulance to an appropriate medical centre if this is required for treatment, accompanied if necessary by doctor or nurse;

5) Arrangements for evacuation and transport home if necessary.

Additional benefit payable as a direct consequence of:

1) Unexpected death, injury or sickness of the insured person or a member of the insured person’s travelling party happening after the commencement of the travel and resulting in the insured person or any of those persons having to return to the point of origin of such travel.

2) The unexpected death, serious injury or sickness of a relative*, business partner or co-director happening after the commencement of the travel and resulting in the insured person or any of those persons having to return to the point of origin of such travel.

3) The necessity on written advice of a medical practitioner for a relative, friend, business partner or co-director of the insured person to travel or remain with or escort him/her directly back to the point of origin of the insured travel if the insured person has suffered injury or sickness during the insured travel

4) Any other unforeseen injury or sickness of the insured person which results in the insured travel being delayed or disrupted and which is outside the control of the insured not otherwise excluded under this section 3 happening after the commencement of the travel.

*Relative means spouse, parent, parent-in-law, grandparent, step-parent, child, step-child, grandchild, brother, brother-in-law, sister, sister-in-law, daughter, daughter-in-law, fiancée, half-brother or half-sister.

Legal expenses incurred due to False arrest or wrongful detention by any government or foreign power during insured travel

  • Baggage and personal effects, money
  • Misplace baggage for more than 8 hours
  • Identification and loss of keys

NOTE: *Excess of $250 on Electronic Equipment including Mobile Phones, Palm Pilots and Cameras. Usually applies as standard

Advance payment of travel & accommodation expenses consequent upon the cancellation of travel between the date of payment and commencement of travel

Reimbursement of nett monetary loss If the insured is kidnapped, hijacked, illegally detained or receives an extortion threat

The insurer will indemnify the Insured Person against any excess or deductible payable under that Policy of Insurance arising out of loss or damage sustained to the Rental Vehicle plus any third party loss/damage that you are legally liable to pay as a result of the car accident during the rental period.

If You necessarily incur Alternative Employee Expenses as defined as the direct result of the original Insured Person suffering death, Serious Injury or Sickness whilst engaged on Insured Travel during the Period of Insurance the insurer will pay You for such expenses up to the limit of the benefit specified in the Schedule of Benefits

The insurer will indemnify the Insured Person for his or her legal liability to pay compensation arising out of death, bodily Injury or Illness of another Person or arising out of damage to property of another Person happening during the Period of Insurance arising out of an Occurrence and whilst the Insured Person is engaged on Insured Travel.

Death by specified sickness including heart attack, cardiac arrest, pulmonary embolism, stroke, malaria, and dengue fever

Variation in previous cover
Only applicable if there is an existing Corporate Travel policy

Provided by the assistance company appointed by the insurer and is an integral component of the policy

 

Some Key features that should be included are:

  • Age limit 100 years
  • No exclusion for financial collapse of an entity under Cancellation, Curtailment and Loss of Deposits.
  • Cover for Loss of Reward points.
  • No pre-existing conditions exclusions.
  • No Terrorism exclusion.
  • No war exclusion.
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