As the world has adjusted to the new normal, we have seen air travel bounce back. Based on the latest numbers from the TSA, air travel in 2024 is up 8% when compared to 2019, with an estimated 820,600 business flights in the US per day.
For many companies, their travel patterns have changed from pre-pandemic levels. Some employers have embraced work-from-anywhere models, blurring the lines between personal and business travel. Other companies have focused on communal gatherings, leaving them underinsured when large concentrations of employees get together. These patterns, along with standard business travel for sales teams and executives, have left many companies with outdated mobility policies and travel insurance.
As background, travel insurance is an employee benefit used within a company as a risk management tool. Given its unique nature of being both an employee benefit and risk management policy, the policies can be managed by either the risk management team or human resources. No matter which department has ownership of the policy, a thorough review is vital, so organizations know what is covered and employees are confident they have coverage when traveling for company business.
With business travel bouncing back, below are six items every employer should review in their policy:
Definition of Eligibility: The definition of eligibility outlines who is covered by the policy and the kind of travel insured. The most basic definition of eligibility is “full-time employees on business travel.” This definition can be expanded to include dependents, contractors, employees employed through an Employer of Record (EOR), special guests, and even employees traveling before their start date for new hire orientation.
Trip Duration: The default for most policies is a 30-day trip duration, which is adequate for most travel. However, it typically does not cost anything to increase the trip duration, and the benefits provided by the policy can be essential. In good practice, I recommend at least a 185-day trip duration. The 180-day mark is a key number in the mobility space, as this can then dovetail with expatriate (expat) insurance designed for employees on assignment for at least six months. Increasing the trip duration to 365 days can also be a strategic move, as employers may be able to eliminate placing employees on costly expat insurance and keep them on the Business Travel plan instead.
Out-of-Country Medical Coverage: If you have any international travel, a business travel accident plan is the least expensive way to cover out-of-country medical for your employees. Out-of-country medical coverage is designed to provide medical coverage for non-preventive services while traveling abroad. Group medical policies in the US will cover emergency care internationally, but they require admission to an emergency room for the claim to be accepted. Out-of-country medical coverage with a BTA can include hospital guarantee admission (money required upfront to enter a hospital) and cover items for non-emergent care. Be careful, some policies offer medical assistance that will triage care but do not cover actual visits. When in doubt, ask if the benefit is insured.
Plan Aggregate Limit: Business travel policies will either set the aggregate limit on a per person basis or a per incident basis. If set as per incident, it is good to review the limit along with the Accidental Death Benefit in place. This will help determine a company’s policy around how many employees can be on the same flight. The aggregate can also be increased if there is a large company offsite.
Personal/Leisure Travel: With the rise of remote work and digital nomads, the distinction between personal travel and business travel has blurred. Insuring these employees can be tricky as it is not always clear if an employee is working while traveling, and if that may constitute business travel. If a company allows this travel, out-of-country medical can be covered through a BTA even if it is pure leisure travel. This is considered a generous benefit, but offering this coverage helps employers provide security to their employees around the clock. Additionally, companies can also cover leisure travel that is added on to a business trip. This is known as sojourn or personal deviation coverage and helps provide personal travel coverage for a few extra days when added on to a business trip.
Repatriation: Repatriation is typically always included in business travel policies. However, the limits and coverage will vary. At a minimum, USD 50,000 coverage should be in place for repatriation. This is a line of coverage where limits can be increased with little to no impact on premiums, thus I like to place coverage for USD 250,000. Depending on how the policy is written, repatriation can also include coverage for domestic travel. Knowing what coverage is in place is the most important.
In today's new, dynamic, travel environment, ensuring that your company's travel insurance policies are up-to-date and comprehensive is crucial. From defining eligibility and extending trip durations to understanding out-of-country medical coverage and repatriation limits, a thorough review of your business travel policies can protect both your employees and your organization. As travel patterns continue to evolve, keeping these six key areas in mind will help ensure that your mobile workforce is adequately protected, whether they are traveling for business or blending work with leisure. By proactively addressing these details, companies can provide peace of mind and support to their employees, no matter where their journeys take them.
Want to discuss travel or other international benefit concerns with Eddie? Reach out at hello@troophr.com.
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