When it comes to the question “why should an organisation buy business travel insurance?” it is clear that there are some obvious benefits:
- Medical cover
- Lost luggage
- Lost equipment
- Cancellation costs
And in certain policies:
- Evacuation assistance in the event of a natural or political disaster or major terrorist incident
But the key drivers behind the decision making process should be “duty of care” to your employees and the fact that the organisation is taking their “corporate responsibilities” seriously.
In the United Kingdom there are certain pieces of legislation that may be triggered if you fail to act responsibly and a traveller is injured or even killed. While many organisation will consider the Health And Safety At Work Act 1974 in the first instance they may fail to consider that they are also subject to The Corporate Manslaughter and Corporate Homicide Act 2007 and the Bribery and Corruption Act 2010.
How will it help if I purchase travel insurance?
It is highly unlikely that a general travel insurance product would cover the cost of any fine issued by a court due to negligence on behalf of a company. However, the fact that an organisation has purchased travel insurance would help demonstrate to a court of law that the organisation has undertaken some due diligence and acted responsibly by transferring some of the associated travel risks to an insurance carrier. It is advisable to evidence the fact that someone in the organisation has evaluated the risks and then purchased an insurance product to support the traveller (and the organisation) should it be required.
Organisations who purchase Travel Insurance should also create a travel policy that makes reference to the existence of the cover and the traveller’s roles and responsibilities. The organisation should introduce some form of traveller training that includes guidance on what is covered within the provisions of the travel insurance policy.
Finally we suggest that organisations consider how they would protect their reputation following a travel related incident that resulted in serious injury or death for their employees. Once again, it may be possible to transfer some of the reputation risks to an insurance product but the organisation must take responsibility for making decisions.