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Do My Overseas Employees Need International Travel Insurance?

By February 2, 2018February 12th, 2018No Comments
Do My Overseas Employees Need International Travel Insurance?

International business trips are a common component of a growing workforce. Successful businesses trips mean that your employees make their flights, get to their meetings, do business, and come home both healthy and happy.

But that’s not to say every business interaction works exactly the way you hope. Contrarily, international travelers can encounter a number of hurdles. When something goes wrong in a foreign country, you must ensure employees are covered and protected. One of the ways to provide for emergencies while overseas is through international travel insurance.

Take a closer look at the different international travel insurance options and what they mean for your expanding business.

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What Is International Travel Insurance?

International travel insurance covers travelers for a variety of problems when they are outside of their home countries. Many insurance coverages, like health insurance, have limited or no coverage when you travel beyond the borders of your home country. Travel insurance protects your employees and your company against emergency expenses that happen while they are on an overseas business trip.

Types of International Travel Insurance Coverage

There are many different aspects of coverage for international travel insurance policies, including:

  • Medical and dental coverage that covers the cost of care and can help you find good, local medical facilities
  • Emergency evacuation and repatriation coverage that will evacuate your employee in case of an emergency and bring him or her home
  • Travel cancellation or delay coverage that reimburses expenses in the case of a cancellation or delay
  • Baggage replacement or delay coverage, which covers expenses if your luggage is stolen or if the airport delays long enough in finding it that your employee needs to replace items
  • Accidental death and dismemberment

Each type of coverage can be combined into an individual policy by your insurance company. This allows you to purchase several different plans with different companies to cover all of the above. For example, IMG Patriot Travel Medical Insurance covers medical and dental expenses, as well as repatriation, trip interruption, and lost luggage.

These travel companies offer more than just reimbursements. Medical and evacuation coverage will also help with logistics of finding treatment or arranging travel. A good travel insurance company will be able to direct your employee to medical facilities that provide high-quality care and arrange travel with reputable businesses.

Single-Trip Coverage vs. Multi-Trip Coverage

A single-trip insurance policy can generally cover an employee for up to 24 months; however, it only covers a single trip. This covers the period when the employee leaves until his or her return, no matter how long the coverage period lasts. This kind of coverage is a good option for companies that send their employees on international business trips infrequently.

For companies that send their employees overseas more frequently, it can be cost-efficient to buy a multi-trip plan. This covers the employee every time he or she travels abroad. A multi-trip plan is not for long overseas assignments, however, as they generally cover trips that last a period of up to one month.

Is Travel Insurance Right for Long-Term Assignments?

Travel insurance is not designed to cover lengthy stays overseas. It generally falls short of what a comprehensive benefits plan might deliver to employees. When you send an expat and family overseas for a long-term assignment, consider other insurance options that provide a wide range of benefits and act more like traditional benefits programs.

Travel insurance is a great tool to mitigate against the cost of expenses in the case of emergencies when you send your employees abroad for a business trip. This coverage can also make it easier to handle the logistics of an emergency since the insurance companies work through them every day.

Take Your Company Global—Without the Hassles

Businesses looking to expand their global workforce can avoid many of the potential hiccups by working with an experienced expansion partner. Velocity Global has expertise in more than 185 countries, along with recruiting and immigration knowledge to get your employees up and running quickly and compliantly. Get in touch with us today to learn more.