Business Travel Insurance

Author: Melissa A.

Published: February 27th, 2024 | Updated: February 27th, 2024
Read time: 6 mins

Business travel is an adventure in itself because anything can happen – your flight could get cancelled due to adverse weather, you could face a delay or miss a connection, get sick or have an accident requiring medical attention, lose your luggage, or have your devices stolen. When going away for a business trip, whether you are an entrepreneur who’s self-employed or you are employed at a company, you want peace of mind knowing that you are covered when your business trip doesn’t go according to plan.

What is business travel insurance?

Business travel insurance covers business travel, whether you are working for yourself or working for an employer. Most large employers offer group business travel insurance as part of an employee’s benefits plan; therefore, travel insurance for business is often geared towards self-employed individuals such as independent contractors or those running a small business. It protects the policyholder from financial risks and losses if an unexpected event occurs before or during a business trip. It can reimburse expenses up to the policy’s limit when the unexpected event is listed as a covered reason.

Small business travel insurance covers domestic and international travel and is available for single and multiple trips throughout the year, depending on how often you travel. If you only take one or two business trips per year, then a single-trip insurance policy may be sufficient to cover you for one trip at a time. However, if you are a frequent traveller who takes more than two business trips per year, annual travel insurance (also known as multi-trip insurance) might be your best bet. It saves time and money because you only purchase coverage once for all the trips you plan to take in 12 months instead of buying a policy for each business trip.

What does business travel insurance cover?

Travel insurance for business trips typically covers trip cancellations, interruptions, delays, missed connections, emergency medical care, emergency evacuation and repatriation, baggage loss and delay, loss and theft of business equipment, accidental death and dismemberment (AD&D) and/or 24/7 worldwide travel assistance. Benefits vary by provider and plan; therefore, ensure you read plan details closely. Some provider plans offer optional add-ons such as rental car damage coverage that you can additionally purchase. If you go this route, you won’t need to buy rental car insurance from the car rental agency.

Business travel insurance generally does not cover natural disasters (floods, earthquakes, tsunamis, volcanic activity, wildfires, etc.) and storms. A travel insurance claim can be denied once the Canadian government issues a travel advisory or a storm has been named for a destination. Also not generally covered are events under the influence, pre-existing conditions, high-risk and adventure sports activities (skiing, hiking, canoeing/kayaking, parasailing, etc.) and more. If you have pre-existing conditions or want to participate in high-risk or adventure sports activities in your free time, purchase these add-on coverages.

Does travel insurance cover business trips?

Yes, travel insurance can cover business trips. Some companies offer travel insurance as part of a business professional’s benefits plan. On the other hand, if you are an entrepreneur in business for yourself, you will most likely need a business trip insurance policy because personal travel insurance does not typically cover unexpected work-related events, for example, devices delayed on route or lost by a common carrier. A benefit to purchasing your own insurance for business travellers is that you can get a policy that covers personal travel as well, which is handy if you like to turn work travel into “bleisure” trips, combining both work and personal travel or are a digital nomad or a person who takes workcations.

Is travel insurance a business expense?

Travel insurance is a business expense when purchased for a business trip. It can be tracked in your business account and claimed as a deduction when filing your income taxes in Canada.

What is business travel accident insurance?

Business travel accident insurance (BTA insurance) is like life insurance, but it’s for business travel. It’s a benefit that provides you, your beneficiary(s), or your estate with financial protection for losses that result in your accidental death or dismemberment (loss of limbs or irrecoverable loss of vision, speech, or hearing) while you are travelling by common carrier for business purposes. It can also offer financial protection for accidents occurring while travelling to and from work events.

Standard coverages found in BTA insurance can include accidental death and dismemberment, emergency evacuation and repatriation, coma, physical and psychological therapies, rehabilitation, bereavement and trauma counselling and vehicle alteration. Some BTA insurance plans will even cover non-medical emergencies such as natural disasters, terrorism, and abduction.

BTA insurance plans vary and do not offer the same coverage options. BTA insurance depends on your business needs and can be customized by purchasing optional add-on coverages. For example, local coverage in addition to domestic and international coverage, occupational accident coverage, out-of-country medical coverage, coverage for trip cancellation or interruption caused by an accident, or you may want to increase coverage for medical expenses or lost wages.

How much is travel insurance for business?

Business travel insurance premiums will cost approximately 4%-10% of your total prepaid, nonrefundable trip cost, such as the total cost of airfare, accommodations, and other travel expenses you incur before your trip departure. Risk factors that affect trip cost include age, the number of employees being insured on a policy, level of coverage, whether single-trip or multi-trip and trip duration for the most extended trip. Additional risk factors include destination, for example, if the destination(s) is high-risk or remote, limits, deductible and any options or add-ons. To find out what business travel insurance will cost you, visit us online at InsureMyTrip to get a personalized quote and compare plans.

What is the best travel insurance for business trips?

Travel insurance will depend on your business travel needs and concerns. For example, if you plan to take more than two business trips within a year, an annual trip insurance policy will be most suitable for you. The best travel insurance policy for business trips typically includes coverages for emergency medical, emergency evacuation and repatriation, AD&D, trip cancellation, interruption and delay, baggage loss and delay, loss and theft of business equipment and rental car damage and COVID-19 if those are also travel concerns.