Understanding corporate travel insurance



It’s a fact that travel insurance is a vital component for any travel plan as you never quite know when an unforeseen travel crisis will crop up. But did you know that corporate travel insurance is not the same as leisure travel insurance? To better equip agents on how to assist clients with this, FlightSiteAgent asked Travel Insurance Consultants (TIC) to answer a few frequently asked questions. Here is what they had to say.

Why is corporate travel insurance important?

When considering the risks involved when travelling for business and leisure, it serves the same purpose. Its primary goal is to cover you against any medical risk and could save you or your business thousands of Rands.

Comprehensive policies also cover losses incurred due to an unforeseen cancellation, luggage coverage, death and disability coverage as well as personal liability coverage. This could also cover you against injuries incurred when doing manual labour overseas. It also protects you against currency fluctuations as you pay for your policy in local currency, but your claims are incurred in foreign currencies.

What is the biggest difference between leisure travel and corporate insurance?

Corporate travel insurance offers a larger variety of options that are more specific to the needs of a business traveller e.g. there are policies for frequent business travellers and companies with several employees travelling frequently.

A comprehensive business travel insurance policy will also cover injuries sustained during manual labour done overseas.

Which business insurance options are available to the individual traveller?

You can either purchase travel insurance each and every time you travel or you can purchase an annual Multiple Entry Policy, which can be activated every time you travel internationally.

Are there special policies that cater for business employees who are frequent flyers?

Yes, if a business requires their employees to travel often, you could recommend they opt for the Annual Declaration Corporate Travel Policy. It provides business travel cover for all staff members for an entire year.

What if your client is planning an extended stay in Africa for work?

One option is to take out an extended standard or comprehensive policy, however the costs of this can end up being very high. The alternative is a package designed specifically for expats in Africa. South African passport holders do have the option of a medical and evacuation-only type policy, which is more affordable and covers you in the event of a medical emergency.

Are injuries covered if manual labour is performed on a trip?

In a standard travel insurance policy, injuries would not be covered. However, a comprehensive industrial policy would cover the medical expenses and some additional fees.

What type of insurance should you recommend if a passenger combines a business trip with a leisure trip?

It is common for a business traveller to add some leisure fun onto their trip.  This is more and more often called ‘Bleisure’. At TIC we consider:

  • The intention for the journey – is your client travelling for business and throwing in some leisure at the end? Or are they going on holiday and, while there, slipping in a business meeting?
  • Secondly, how much of the journey is spent on leisure vs business?  If your client is travelling for 15 days and will be doing 10 days business and 5 days fun, a business policy is fine.

Similarly, if they are going on a holiday for ten days and then attending a conference for two days, a leisure policy is fine.

Exceptions include:

  • If they plan to participate in an extreme sport, a sports extension, regardless of the policy, is highly recommended.
  • With regards to manual labour, the only option is for an industrial policy for full cover.

What if my client already has travel insurance through their credit card company?

Advise your client to study their policy, as it can be very basic and lacking in some aspects. If your client would like a comprehensive policy, then you can inform them that top-up options are available and calculated based on what is already offered. Available top-up options include Medical Aid and Credit Card top-up options.

How far in advance to their trip should my clients sort out their travel insurance?

You can purchase coverage any time before departure. However it is advised to purchase a policy as soon as payment is made for a trip. This includes cancellation coverage from up to six months before the trip.

Is it possible to take out travel insurance after the clients have already departed?

No, it has to be arranged before departure.

Can I extend my clients’ travel insurance policies should they extend their stay?

Yes, granted that the travellers have not claimed on the policy and it hasn’t yet expired.

In the end, it doesn’t hurt to include an insurance quotation. Travellers often expect insurance to be more costly than it is, and so more than likely will not have considered taking it out. By providing them with the costs and benefits you allow them to make an informed decision that could end up saving them thousands of Rands. Agents also earn 10% commission (already included in the quote) when they purchase TIC travel insurance from www.flightsite.co.za. Agents can claim the commission by sending a mail to [email protected] with their FRAG number and the insurance confirmation email.

If you have any further questions contact [email protected] or call 086 133 3392 and one of our friendly account managers will be
able to assist.

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