Business Travel Insurance: 2024 Guide + Best Options

Business travel insurance is a specialized coverage designed to protect employees and employers during work-related travel. It typically covers a range of risks that employees may face while travelling for business, such as medical emergencies, trip cancellations, lost luggage, flight delays and even accidents.

For businesses, this type of insurance ensures that any disruptions or unforeseen events don’t result in significant financial losses or liabilities. It’s especially useful for companies that frequently send their employees on domestic or international trips.

In this guide find everything you need to know about business travel insurance: how it works, what it covers, what it costs, and the best plans in the market.

What does business travel insurance cover?

Here’s what business travel insurance usually covers:

• Medical expenses: Covers emergency medical treatment, hospital stays and sometimes medical evacuation if an employee suffers from an injury or falls ill while on a business trip
• Trip cancellation or interruption: Reimburses prepaid, non-refundable trip costs if the trip is canceled or cut short due to reasons like illness, injury or emergencies
• Lost or delayed luggage: Covers costs related to lost, stolen or delayed baggage, including reimbursement for essential items like clothing and toiletries
• Flight delays or cancellations: Offers compensation in case of flight delays or cancellations due to reasons covered under the policy
• Personal liability: Provides coverage if an employee is liable for causing damage or injury while traveling
• Accidental death and dismemberment: Pays a benefit to the employee or their beneficiaries in the event of a serious accident or death during a business trip

What is the cost of business travel insurance?

The cost can vary widely depending on several factors, including the type of coverage, trip duration, destination and the traveler's age.

Here's how these factors influence the price:

• Trip duration: Longer trips usually cost more to insure because the likelihood of an incident increases over time.
• Destination: Traveling to higher-risk areas (e.g., countries with expensive healthcare or unstable political environments) will result in higher premiums.
• Coverage level: Policies with more comprehensive coverage, including medical evacuation, trip cancellation and business equipment protection, tend to be more expensive.
• Traveler's age: Older travelers may face higher premiums due to an increased likelihood of health issues.
• Frequency of travel: Frequent traveler plans, which cover multiple trips per year, might offer a more cost-effective option compared to insuring each trip separately.

Average cost

Type of policy	Average cost	Details
Single trip policies	$40 - $150 per trip	For short-term domestic or international business trips.
Annual multi-trip policies	$300 - $1,000 per year	Best for frequent travelers, covers multiple trips within a year.
Self-employed or small business	$50 - $200 per trip	Basic coverage for self-employed individuals or small business owners.

Customizing your policy based on specific business needs (like adding coverage for business equipment) will influence the final price. Always compare options to find the best value for your particular situation. Use our free tool below to compare the best travel insurance options for your business and get instant quotes.

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What is international business travel insurance?

It protects employees traveling abroad for work-related purposes. It expands on the typical business travel insurance by offering additional coverage tailored to international travel risks, such as medical care in foreign countries, assistance in navigating foreign legal systems and protection against geopolitical instability.

Here's what international business travel insurance generally covers:

1. Emergency medical coverage abroad

• Medical expenses: Covers medical treatment if an employee falls ill or suffers from an injury while overseas
• Medical evacuation: Arranges and covers the cost of transporting an employee back to Canada (or another location) for treatment if adequate care isn’t available locally
• Repatriation of remains: In case of death, this coverage pays to transport the employee’s remains back home

2. Trip cancellation, delay or interruption

• Covers non-refundable costs such as airfare, hotel bookings or event fees if a trip is canceled or cut short due to illness, emergency or other unforeseen circumstances
• Provides compensation for extended delays and helps cover expenses like meals, hotel stays and rebooking fees

3. Other coverge

• Lost or delayed baggage: Provides reimbursement for personal belongings and business equipment that may be lost, stolen or delayed
• Business equipment coverage: Covers the cost of business-related items, like laptops or other essential equipment, that are lost, damaged or stolen during travel
• Political or security evacuation: Offers coverage in case an employee needs to be evacuated from a region experiencing political unrest, terrorism or natural disasters
• Personal liability: Protects employees from lawsuits if they accidentally cause harm or damage to others or their property while on international business
• Travel assistance services: Provides 24/7 emergency assistance, including help with travel arrangements, lost passports or legal support in a foreign country.
• Geopolitical risks: Coverage for cancellations or evacuations due to political instability, government advisories or terrorism-related incidents

Why international business travel insurance is essential

In some countries, healthcare can be extremely expensive, and without insurance, companies may bear the full cost of employee medical treatment abroad. Also, having insurance ensures that if something goes wrong, the financial impact is minimized, helping businesses to stay resilient during disruptions.

Employers have a duty of care toward their employees, and providing international travel insurance is one way to ensure their safety and well-being.

This type of insurance is particularly valuable for Canadian companies with employees traveling frequently to countries with vastly different healthcare systems, political situations or higher risks of natural disasters. Many Canadian insurance providers offer customizable international business travel insurance plans to suit specific company needs.

What is business travel insurance for self-employed people?

Business travel insurance for self-employed individuals is tailored to protect freelancers, consultants, contractors or small business owners when traveling for work-related purposes. 

Unlike corporate plans that cover employees, self-employed business travel insurance focuses on providing coverage to an individual who may rely heavily on their business operations for income. This type of insurance ensures that any interruptions or emergencies during a business trip won’t have a devastating financial impact on their livelihood.

Why self-employed individuals need business travel insurance

As a self-employed person, any unexpected travel delays, cancellations or medical issues can disrupt your cash flow. Business travel insurance helps minimize these risks by reimbursing expenses and ensuring you're covered during emergencies.

Here are some other benefits:

• Cover equipment: Losing essential tools like your laptop or work equipment can impact your ability to get work done on the go. Business travel insurance for self-employed individuals often includes coverage for lost or damaged business equipment.
• Global coverage: If your work takes you to international destinations, having medical and liability protection in foreign countries can save you from expensive out-of-pocket costs.

Choosing a policy

When selecting a small business travel insurance business travel insurance policy — or for a self-employed person — you’ll want to look for policies that:

• Offer flexibility in coverage based on the number of trips or duration
• Include adequate equipment protection for the tools or devices you use for work
• Have comprehensive medical coverage that applies internationally
• Provide cancellation protection if a business deal or client meeting is delayed or canceled

Use our comparator to find the policy that meets your needs and expectations.

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What is business travel accident insurance?

Business travel accident insurance is a specialized type of insurance that provides coverage for accidental injuries or death that may occur during business trips. It is designed to protect both employees and employers by offering financial benefits in the event of an accident while traveling for work-related purposes.

This coverage is typically an add-on and focuses specifically on accidents rather than general travel disruptions.

Key features of business travel accident insurance

Accidental death and dismemberment (AD&D) coverage! This is the core of business travel accident insurance. It provides a lump sum benefit to the insured person or their beneficiaries in the case of accidental death or serious injury, such as loss of a limb, eyesight or other major body functions during a business trip.

Other coverage options include:

• Accident-related medical expenses: Covers medical costs associated with treating injuries sustained from an accident while traveling. This may include hospitalization, surgery or rehabilitation services.
• Disability coverage: Provides financial assistance if the insured person becomes permanently or temporarily disabled due to an accident while on a business trip. This can help cover lost income during the recovery period.
• Repatriation of remains: In the unfortunate event of accidental death, the insurance will cover the costs of transporting the deceased person’s remains back to their home country.
• Emergency evacuation: If an accident occurs and needs immediate medical evacuation, the policy covers the cost of emergency transportation to a medical facility.
• Coma benefit: If the insured person enters a coma due to an accident, the policy may pay out a monthly benefit to their family or dependents during the period of incapacitation.

Who needs business travel accident insurance?

Pretty much everyone — employers, self-employed individuals and employees. Here’s how it benefits each:

• Employers: Large corporations or small businesses with employees who frequently travel for work. It provides peace of mind, knowing that employees are financially protected in case of an accident.
• Self-employed professionals: Freelancers, consultants or business owners who travel for meetings, conferences or projects can benefit from coverage in case of accidents.
• Employees: Anyone who travels for work can have additional protection beyond standard health or travel insurance.

How does business travel accident insurance differ from business travel insurance?

• Focus: Business travel accident insurance specifically covers accidents that result in injury, death or disability. General business travel insurance, on the other hand, covers a broader range of travel-related risks such as trip cancellations, lost luggage and medical emergencies.
• Benefits: The payout from business travel accident insurance is typically a lump sum, especially in cases of death or serious injury, whereas business travel insurance may offer reimbursement for travel disruptions or medical costs.

Why it’s important

• High-risk travel: If employees are traveling to areas with higher accident risks (e.g., regions with poor infrastructure, dangerous weather or heavy traffic), business travel accident insurance provides critical coverage.
• Financial security: In case of a serious accident, the insurance can cover not only immediate medical costs but also long-term financial needs, including disability benefits or death benefits for dependents.
• Employer responsibility: Employers have a duty of care to their employees. This type of insurance demonstrates a commitment to their safety and well-being during business travel.

In short, it offers a safeguard for unpredictable situations, making it a valuable add-on for companies or individuals engaging in frequent or high-risk work-related travel.

What are the top 5 best business travel insurances in Canada?

When it comes to safeguarding your business trips, having reliable travel insurance is crucial. Whether you're traveling domestically or internationally, the right coverage ensures that unexpected events like medical emergencies, flight cancellations or lost luggage don’t disrupt your business operations.

Here are five of the best business travel insurance providers in Canada, offering comprehensive protection for all your work-related travels:

1. soNomad travel insurance: Affordable plans with comprehensive coverage for emergency medical expenses, trip interruptions and lost luggage, designed for frequent and extended business travelers.
2. Allianz travel insurance: Offers 24/7 global assistance, covering trip cancellations, medical emergencies, lost baggage and delays. Ideal for businesses with international travel needs and flexible corporate plans.
3. Manulife travel insurance: Customizable plans that include extensive medical coverage, trip cancellation protection and business equipment coverage, catering to both small business owners and corporate travelers.
4. RSA Travel Insurance: Known for comprehensive coverage, including medical expenses, trip interruptions and business equipment loss or damage. Provides 24/7 global travel assistance and support during emergencies.
5. Travel Guard by AIG: Provides robust protection for medical emergencies, trip cancellations, flight delays and accidental death coverage, along with concierge services and luggage tracking, ideal for business travelers.

Compare all these options and find the best policy that suits your needs.

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