corporate travel insurance A buyer s guide Keeping your employees protected
A buyer s guide 3 corporate travel in these troubled times, it makes sense to purchase a corporate travel policy for your employees (even if they only carry out a small number of trips) to sufficiently protect them in the event they suffer injury or illness and to ensure their safety and security whilst travelling on your behalf especially to high risk locations. A Corporate Travel policy also provides a number of additional benefits which are designed to protect your business such as cancellation costs (including following a natural catastrophe); the cost of sending a replacement employee or returning the original employee who has been taken sick or injured whilst on a trip; cover for the loss, theft or accidental damage to company property or company money as well as political and natural catastrophe evacuation. There is no age limit The policy also provides; travel cover for employees and guests attending any Corporate Events arranged by the company as well as for any employees who are sent on a long term secondment outside their country of permanent residence Increased limits for certain benefits that can be requested on application Provision of assistance and up-to-date security and health advice A business travel assistance app which provides a complete support network for travelling employees An e-learning programme for employees, as employers need to demonstrate they have taken all practical steps to meet their employees health and safety needs Health Portal and Second Opinion which can be used even if no claim is being made. general i. In addition to the Security Advice for Foreign Business Travel, and specifically for those traveling to the USA, ensure they have logged the required details on the US government website: https://esta.cbp.dhs.gov/esta/esta.html. It is no longer possible to do this on the day you fly. ii. Don t buy corporate travel insurance via your travel agent as they are unlikely to have sufficient knowledge of what is being offered by insurers. iii. There are five principal corporate travel insurers, excluding lloyd s. They all have similar product offerings. iv. Duty of care to your employees to protect whilst travelling for work purposes.
4 COrPOrATE TrAvEl InSUrAnCE COllECTIOn OF InFOrmATIOn i. Start your own internal review process at least 90 days ahead of the renewal date and make sure you are made aware of any problems experienced with the insurer in the last 12 months. You do not want to find you have left the renewal so late that you are practically forced to accept the insurer s offer because you need the cover in place the next day but have lost the opportunity to address areas of concern. ii. Below is a table showing the typical info requirements. These will vary between insurers, and it may not be possible to answer all of these, but as much as possible will help the process. Country Number of trips Average duration (days) UK Europe USA/Canada rest Of World (other than those specified below) Maximum duration (days) Some territories need to be underwritten; these will vary between insurers but will tend to consist of: Afghanistan Chechnya Iraq north Korea Somalia Travel to sanctioned territories: those carriers with a US parent company may have more sanctions. The following info will also be required by most insurers: Please provide 3 years confirmed claims/loss experience? Do you have any known scheduled aircraft accumulations in excess of 2.5m? Do you have any known non-scheduled aircraft accumulations? Do you own/lease or operate any aircraft? Do you have any offshore exposure? Do you use non-standard aviation e.g. unlicensed or military aircraft? YES/nO YES/nO YES/nO YES/nO YES/nO
A buyer s guide 5 If, yes, please provide details below. If you employ the pilot or are a qualified pilot, you will need to complete a supplementary questionnaire. State if Helicopter or non-scheduled aircraft geographical location of flight Estimated number of return flights number of persons on each flight Category of Insured Persons making the trip Average max iii. Provide details on any claims of which the insurer is unaware. First reporting of a claim due from the previous contract shortly after concluding the renewal will almost certainly lead to the insurer asking for an explanation. iv. Any other material information. material in this context refers to all information which a prudent Underwriter (not necessarily the Underwriter in question) would wish to take into consideration when considering whether or not to accept the risk and, if so, upon what terms and at what price. v. If you have got any old claims which are either in dispute or have not been settled by the insurer for any reason, the renewal is a good time to negotiate as the insurer will (probably) want to renew your policy. vi. remember your negotiating power is probably greater at the time of renewal than during the contract. This is the time to make those requests for enhancements in your cover so it does pay to review the policy with your broker and make sure it meets your needs. vii. Consider maximizing your buying power by combining the Corporate PA policy with the Corporate Travel. viii. make sure you advise insurers of any employees posted overseas on long term secondment (over 12 months). It is possible you can get cover from your insurer under the Travel policy but some insurers will regard them as being overseas for too long to qualify. In these circumstances you will need to buy an Expatriate medical policy, if the employee is unlikely to return to the UK.
6 COrPOrATE TrAvEl InSUrAnCE placement/coverage limits The list below gives the basic benefits and sums insured typically offered by AIg Europe limited. However, similar benefits and limits are available from other insurers: medical Expenses and other Emergency Travel Expenses Unlimited repatriation Expenses Unlimited Assistance Unlimited legal Expenses 50,000 Personal liability 5,000,000 Personal Property 10,000 Business Equipment 3,000 Personal money 5,000 Cancellation, Curtailment, rearrangement and replacement 10,000 Cancellation, Curtailment, rearrangement due to a natural Catastrophe 10,000 Hijack 25,000 Kidnap and ransom (Aggregate limit) 250,000 Political (and natural Disaster) Evacuation 50,000 vehicle rental Excess 1,000 Points to look out for here are: Do the per person policy limits meet the needs of your high earners? Scheduled aircraft accumulation limit could you exceed this? non-scheduled aircraft accumulation limit could you exceed this? Any one accident limit is it sufficient? What if you organize a whole company gathering off site? (admittedly more of a Corporate PA question) Do you have sufficient medical cover? A minimum of USD 5,000,000 for trips to USA would be recommended, and although we have shown unlimited cover here some insurers will have a limitation Beware of over insurance. It may be possible that more than one part of your organization could buy travel insurance What repatriation/evacuation service does the insurer provide? Who is providing this, what is their global reach and what is their record? You should ask about their capabilities.
A buyer s guide 7 ExClUSIOnS The exclusions that all insurers will impose, and cannot be added back in are: Travel against the advice of a medical practitioner Where the purpose of the trip is to receive medical treatment Self inflicted injuries, suicide and attempted suicide Deciding not to travel, or, if on a trip, deciding not to continue As a result of the use by an insured person of non-prescribed drug or drugs which cannot be legally obtained from a pharmacy. routinely InClUDED COvErAgE Free leisure travel attached to business travel for company directors (cover for director, partner and dependent children, limited to 60 days if they travel alone) no policy excess no pre-existing medical condition exclusions (provided not travelling against medical advice) Full War & Terrorism cover including within the UK nuclear, Chemical and Biological Terrorism cover High accumulation limits available no excluded territories (just a few territories need to be underwritten and which vary per insurer) repatriation of human remains following suicide abroad. OTHEr USEFUl ExTrAS Crisis Containment management Second Opinion medical Service Health Portal providing a 24 hour remote nursing service Concierge Service Business travel assistance app. Business travel assistance website providing security awareness training, country reports and security travel alerts. If you don t have these in your policy, ask your broker why not. They are becoming common add-ons from the major writers of the business and you should be able to secure them at no or negligible additional cost.
8 COrPOrATE TrAvEl InSUrAnCE communication to employees You need to have a supply of assistance cards with details of what to do in the event of an emergency. These will give a 24 hour phone number and will show the relevant policy number, and should be given to all employees who travel. These cards do not need to be updated at each renewal, but if you change travel insurer then all cards should be replaced. make employees aware of the coverage via your internal website if possible. If you do have an employee taken so unwell that he needs to be repatriated to his home country for further treatment, remember that treatment in the home country is not covered by a Corporate Travel policy. Your H.r. department may need to step in to the coordinate care through your private health insurer on the employee s return to home country. conclusion A Corporate Travel policy provides multi-trip business travel insurance for all insured employees who travel on your company s business including trips in the UK, and incidental leisure travel. Cover can be extended for Directors, their partners and children on personal leisure trips including when the Director is not specifically travelling.
A buyer s guide 9 ABOUT THE AUTHOrS The Accident & Specialty Team has extensive experience in dealing with a wide range of clients from Housing Associations to large multinationals. We have access to all the major Insurers and lloyd s Underwriters and are able to arrange global policies for companies with an international presence. We are committed to offering a high level of service and expertise to all our clients. Jane Michael I have over 20 years experience in the insurance industry specialising in Personal Accident and Travel insurance as well as other niche market business such as international medical programmes. I have spent time in germany working for an international underwriting manager specialising in Personal Accident & Sport. I joined JlT in 2006 and since 2010 I have cemented my knowledge of the sector by focusing on a group PA & Travel facility where we have the authority to quote and bind policies on behalf of a major insurer for the corporate clients of JlT UK offices. Mark Birks I work in an underwriting capacity within JlT Specialty. I have worked in a technical role for various lloyd s brokers for 12 years handling numerous Binding Authorities and various Facultative Insurance and reinsurance Contracts mainly related to Personal Accident and Travel.
10 COrPOrATE TrAvEl InSUrAnCE At JlT Specialty, we believe in doing things differently. Why? Because in the world of insurance broking, risk management, claims consulting and settlements, the only way we can develop solutions that really deliver is to properly understand all the different challenges you face. And we know the answer does exist, no matter how difficult the question is. Our success comes from focusing on sectors where we know we can make the greatest difference. On using insight, intelligence and imagination to provide expert advice and robust often unique solutions. And on building partner teams to work side-by-side with you, our network and the market to deliver responses which are carefully considered from all angles. And because of this, our clients trust us. They have total confidence that the vital elements of their operations are covered, enabling their businesses to be even more ambitious and surpass expectations. We know how we work makes us different. It s quite a claim but we re driven to deliver on it every single day.
COnTACTS MARK BIRKS +44 (0) 207 558 3279 mark_birks@jltgroup.com JANE MICHAEL +44 (0) 207 558 3654 jane_michael@jltgroup.com JLT Specialty Limited The St Botolph Building 138 Houndsditch london EC3A 7AW Tel +44 (0)20 7528 4000 Fax +44 (0)20 7528 4500 www.jltgroup.com lloyd s Broker. Authorised and regulated by the Financial Conduct Authority. A member of the Jardine lloyd Thompson group. registered Office: The St Botolph Building, 138 Houndsditch, london EC3A 7AW. registered in England no. 01536540. vat no. 244 2321 96. September 2014 268686