In the United States, more than $1.3 billion was spent on travel insurance in 2006, representing a growth of 20% over 2004, according to the 2007 Travel Insurance Market Survey, which was conducted by the U.S. Travel Insurance Association (UStiA).
The survey reported that, in 2006, more than 67 million Americans had coverage by a variety of travel-related insurance and emergency assistance services from UStiA member companies, an increase of 18% over 2004. What's more, of these individuals, one-third of them – 23 million Americans – bought a per-trip policy, a 20% increase.
Business travel often includes flight delays and cancellations, as well as lost luggage. In addition, emergency medical care is sometimes needed while on the road. Before the next business trip or corporate event, consider purchasing a business travel insurance policy.
Several types of travel insurance policies are available; following are some of the most common types.
Trip Cancellation/Interruption Insurance
Business trips don't always go as scheduled – if a traveler's plans change suddenly and a trip needs to be canceled or rescheduled, trip cancellation/interruption insurance can be used. This type of insurance pays the difference between the airline or other vendor's refund and the amount that was originally paid for the trip.
However, the insurance will only offer reimbursement under certain circumstances, such as illness or injury; weather related issues; sudden business conflicts; or death of the traveler or a family member, a traveling companion, or a business partner. In addition, there are some policies that will cover only medical reasons, and some will not cover pre-existing medical conditions. Make sure to read the fine print and be familiar with the plan's coverage before leaving home.
Emergency Medical Evacuation Travel Insurance
In the case of a sudden emergency, emergency medical evacuation insurance can be used. Circumstances in which emergency evacuation might be necessary include travel to remote destinations, especially those a long distance from modern medical facilities; and adventure travel.
Baggage Loss Insurance for Travelers
Lost luggage is not an infrequent occurrence; baggage loss insurance reimburses travelers for for lost, stolen, or damaged bags. When packing for a business trip, write a list of all items being packed to receive reimbursement in the event the bag is lost, stolen or damaged.
Business travelers should look into travel insurance in the event of flight cancellations, itinerary changes or for medical emergencies.
Sources: Ana Gonzalez Ribeiro, “The Basics of Travel Insurance.” Investopedia.
"Travel Insurance: Is it Necessary?" Better Business Bureau
Teresa Shaw - Teresa J, Shaw is a professional journalist with more than 12 years of experience. She travels for both business and pleasure several ...
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