Whether you’re going abroad or just to the next state over, traveling for work or for vacation, the details probably took months to plan and involve significant financial investment. Thankfully, protecting your investment is possible—either as an individual or as an organization–with a variety of different travel insurance options.
Travel insurance for individuals
Travel insurance can cover you for loss of baggage, pre-trip cancellation, trip interruption, dental work, acts of terrorism or cancellation for any reason. It can also help fill potential gaps in your medical insurance, depending on what’s covered under your individual plan. Travel insurance is often sold in a package deal, giving you the biggest bang for your buck, and the peace of mind that if the worst should happen, you will be covered.
Some important types of travel insurance:
- Trip cancellation—Reimburse you for pre-paid travel expenses if you aren’t able to take your trip because you or a family member becomes ill or dies.
- Travel delay—Reimburses you for pre-paid expenses if you aren’t able to take your trip because of a travel delay, such as a flight delay or cancellation.
- Trip interruption—Reimburses you for pre-paid expenses if your trip is cut short because you or a family member becomes ill or dies, or because of any other misfortune listed in policy. Covered reasons might include bad weather, airline strikes, terrorism, bankruptcy, jury duty, or fire or flood damage to your home.
Travelers often overlook travel insurance when booking their trips, thinking they are already covered by their employer’s medical insurance. While your plan may cover the costs of emergency care out of network, for others, injuries or illnesses suffered while abroad may not be covered. It’s important to check with your insurance provider to see what’s covered before you travel. For situations in which you are not covered, travel insurance can help fill the gap.
Medical travel insurance can include:
- Medical/health—Reimburses you for medical and emergency dental expenses that you have because of an illness or injury while you’re traveling.
- Medical evacuation—Provides emergency transportation to take you either to a hospital in the geographic region where you are or for transportation back to a hospital near your home.
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Travel insurance for business
Think about the following scenarios when traveling for business:
- You receive notice that a top executive in your company was in a car accident while on a business trip in Milan.
- There was an earthquake in Chile, which prevented an employee from returning on time from a business trip.
- Several of your employees traveling together in Beijing came down with pneumonia.
These situations should prompt you to examine whether you would know what steps to take next.
- Do you know what guidance to give these employees?
- Could you direct them to any specific medical facilities?
- How familiar are you with the medical system of that country?
- How much would it cost to arrange alternate travel plans in the event of a delay or setback?
Employers can purchase insurance specific to employees they send overseas for business purposes—even if the trip is short term. Generally, American medical insurance is not accepted overseas, nor do the Social Security, Medicare and Medicaid programs provide coverage for hospital or medical costs outside the United States. Obtaining medical treatment and hospital care abroad can be expensive. Instead, employers can purchase supplemental medical coverage for their employees that their current health plan does not supply. For instance, medical travel insurance will pay for medical evacuation by helicopter if traveling in a place with inadequate facilities. This can otherwise cost up to $50,000.
Another form of travel insurance that an employer of overseas workers will want to consider purchasing is K&R insurance (Kidnap, Ransom and Extortion Insurance). In certain parts of the world, kidnapping and extortion of wealthy American executives has become a business. A basic K&R policy includes such things as hostage negotiations, ransom payment, loss of income, interest on bank loans and medical/psychiatric care.
Whether traveling for business, or just for fun, Kapnick can help ensure your trip is protected. Reach out today at [email protected] or call 888-263-4656 and a personal insurance or business insurance consultant can discuss your unique needs.
