Nomad Travel Insurance

Author: Melissa A.

Published: May 1st, 2024 | Updated: May 1st, 2024
Read time: 6 mins

Nomads travel about the world for an extended period, wandering from place to place, often visiting more than one country. Some, known as digital nomads, travel to work remotely from anywhere, while others, known as expatriates or “expats,” travel to work and live abroad more permanently. Due to the nature of the trip, nomads face a unique set of risks that differ from the average traveller. They can be a victim of a cyber-attack resulting from joining public Wi-Fi networks or a victim of lost, stolen or damaged electronic devices and/or participate in adventure activities. When you have nomad travel insurance coverage, you are financially protecting yourself from these types of unexpected events, and more so with a policy specifically designed to cover any travel plan deviations you hope won’t happen to you on your worldwide trip.

What is nomad travel insurance?

Nomad travel insurance is designed to cover the unique needs of those travelling outside Canada long-term for up to one year or two years maximum. It’s similar to annual travel insurance (also called multi-trip insurance) in that it covers multiple international trips throughout the year and is renewable. However, unlike annual travel insurance, nomad travel insurance can be purchased and renewed while travelling instead of before departure. It encompasses several benefits in one plan, typically including coverage for emergency medical, travel disruptions and electronic devices, with the ability to remove or add additional coverages to tailor your nomadic plan to adapt to your changing needs.

What does nomad insurance cover?

Nomad insurance can cover emergency and non-emergency medical expenses resulting from illness or injury while you are outside of Canada, for example, treatment, physician care, intensive care, hospital stay, and prescription medication. It can also cover emergency medical evacuation and repatriation when you must be transported to the nearest qualified hospital or back home for treatment, or your remains require transportation home. Expenses for travel disruptions can be covered, such as trip cancellation, interruptions, travel delays, missed flights, baggage loss and delays.

You can also be covered for personal effects if your belongings or electronics get lost, stolen or damaged, AD&D (Accidental Death and Dismemberment), and 24/7 emergency assistance. Some nomads insurance plans may even cover expenses resulting from a cyberattack and short visits back home to Canada. The beauty of nomad insurance is that you can tailor a plan to meet your nomadic lifestyle by removing or adding any additional coverages you need. Just be sure to read the details of a plan before purchasing so you are aware of its terms, conditions, limitations, and what you will and will not be covered for.

How does health insurance work for remote workers?

Remote work health insurance is emergency medical travel insurance (also known as travel medical insurance or travel health insurance). It’s short-term health insurance for digital nomads who travel freely abroad while working for up to 12 months or 24 months maximum. It covers emergency and non-emergency medical events and may also cover emergency evacuation, repatriation and pre-existing conditions. Insurance for digital nomads typically does not cover comprehensive or long-term health care.

On the other hand, long-term health insurance (commonly known as international private medical insurance or international health insurance) is intended for expats travelling to work and live abroad for multiple years. It’s comprehensive health insurance covering urgent and routine medical care regionally or worldwide and should be arranged before trip departure. International Private Medical Insurance (IPMI) can also include benefits such as quick access to medical care, choice of a medical provider, direct provider payment, and access to a healthcare helpline. IPMI plans are flexible. Customize a plan to meet your and your family’s needs by adding additional coverages for vision and dental care, maternity care, sick leave pay, travel disruptions, third-party liability, etc.

How much is travel insurance for digital nomads?

Insurance for remote workers will cost approximately 4%-10% of your total prepaid, nonrefundable trip cost. Expenses that make up your total trip cost include your airfare, accommodations, and any other travel costs you pay for before departure. Trip cost depends on risk factors such as traveller(s) age, number of travellers insured on a policy, and level of coverage. Additional risk factors affecting the trip cost include destination(s), for example, if high-risk or remote, limits, deductible and any options or add-ons you choose. Travel insurance for digital nomads is less expensive than travel insurance for expats because it’s strictly short-term emergency medical insurance. With the ability to tailor your plan by removing benefits and only keeping and adding the benefits you need for your nomadic adventure, your plan can be even more affordable.

Is nomad travel insurance worth it?

Nomad travel insurance is worth it for a medical emergency alone because risks are unique and increased when you are a nomadic explorer in a foreign country. Suppose you were to get injured by participating in adventure activities including ski and dive or mountain climbing, river rafting, ziplining, parasailing, etc. In that case, you want to ensure that you are protected with nomad health insurance so you will receive quality medical care and you won’t have to pay your medical expenses ranging from tens of thousands to millions of dollars upfront and out-of-pocket. Alternatively, your flight could get cancelled, your laptop could get lost in transit, your possessions could get stolen, or your destination could experience adverse weather. By planning for these types of what-if scenarios, you can rest assured knowing that you are prepared for the worst and that costs for various emergencies you could encounter while on your global trip can be financially covered by having nomad travel insurance.

What is the best nomad travel insurance?

Nomad travel insurance will be dependent on your travel needs and budget. For example, consider the length of your trip, whether you will return home for a short visit, travel solo or as a group with family, or participate in adventure activities, and the benefits you need to keep a plan within your budget. The best option will be a nomad plan designed explicitly for the nomadic lifestyle, which typically includes benefits for emergency medical, medical evacuation and repatriation, pre-existing conditions, pandemics, AD&D, financial default, personal effects, travel disruptions and 24/7 emergency assistance. Backpackers travel insurance (also known as long-term/long-stay travel insurance or extended trip insurance) is another excellent option for the nomad traveller who wants a budget-friendly plan because they travel without electronic devices and/or don’t require all sorts of extra coverages.