“I don’t need corporate travel insurance; this is a perk of my credit card” is a common phrase we hear when the topic of travel insurance arises. It’s crucial, however, for businesses to understand the common risks of relying solely on travel insurance provided through your credit card.
Risks and common limitations of credit card travel insurance:
1. Activation conditions
Credit card travel insurance usually only activates when you buy your air travel tickets (or sometimes other transport or accommodation expenses) using your credit card. If you or your staff book a trip without using the card, coverage may not be in place. Furthermore, some credit card providers stipulate that insurance cover will not activate in circumstances where rewards points are used to buy your air travel.
2. Traveling with dependents
Coverage may not be included for dependents if the trip is not booked through via the credit card provider. This can be problematic when traveling with a partner or spouse.
3. Extended trips
Many credit card travel insurance policies only cover short trips, typically between 14 – 60 days. Extended business trips outside of this timeframe may not be covered.
4. Pre-existing medical conditions
Credit card travel insurance policies typically offer emergency medical benefits, but many exclude coverage for pre-existing medical conditions.
5. High-risk activities and adventure sports
Activities like skiing, scuba diving, or going on a cruise may be excluded from cover under a credit card travel insurance policy. If you are injured and require emergency treatment as a result of undertaking these activities, you may find yourself without cover.
6. Luggage and travel documents:
While credit card travel insurance typically includes benefits for lost or delayed luggage, many credit cards provide insufficient limits and/or limited coverage for lost money, jewellery, and electronic equipment.
7. Travel delay/cancellation expenses:
Credit card insurance typically limits or excludes claims for cancelled or interrupted trips, which are common triggers for travel insurance.
8. Claim time period:
Credit card travel insurance policies generally require that you submit a claim within a set time period of the ‘loss’ or claim occurring, which may not be a requirement of a standalone policy.
Why corporate travel insurance may be more appropriate for your needs:
A corporate travel insurance policy can provide tailored coverage and peace of mind given the broader scope of cover available. It allows business directors to customise their coverage to meet the specific needs of the business, staff, and other insured persons.
Key benefits include:
- Additional flexibility and protection: A standalone policy can be customised to include optional coverages such as rental car protection, sports and activities, and flight delays.
- Comprehensive coverage: A corporate policy can be customised to include not only C-Suite travel but also that of all staff and volunteers.
- Streamlined claims process: A streamlined claims process allows for quicker resolution and fewer interruptions to your business operations.
In today’s global business environment, directors and employees frequently find themselves traveling for work. While travel insurance included as a perk by credit card providers may seem convenient, it is essential to read the fine print to understand the specifics of what may or may not be covered.
Understanding the benefits of a corporate travel insurance policy will assist in making an informed choice and achieving adequate coverage and protection for your staff and business. Bellrock’s Advisors and Claims Advocates are on hand should you require assistance.
