With various forms of COVID-19 vaccines now being distributed around the world, we may see a number of countries slowly increase their intake of overseas corporate travellers.
If you are a business, director or employee gearing up for overseas work, you need to make sure you’re equipped with the right form of expat or business travel insurance before venturing abroad.
Why is expat travel insurance important?
Although there are several benefits to working overseas for prolonged periods of time, there are also numerous risks. More often than not, being a non-citizen of a country or region you work in limits you from certain privileges that citizens receive, and some benefits may be unaffordable or impossible to obtain as a foreigner.
As an expat, you are exposed to a number of potential risks, such as:
- Medical emergencies
- Optical and dental issues
- Flight cancellations and disruptions
- Natural disasters
- Political conflicts
- Wars, hijackings and detention
- Pandemics, such as COVID-19
According to Tony Venning, the Managing Director of Crucial Insurance, “The right expat travel insurance policies can provide you with the necessary protection if the situation takes a turn for the worse, and as such it could be one of the most important items you purchase before working overseas. And on the flip side, investing in the wrong expat travel insurance packages can not only lead you to lose money but also be left stranded during times you need help the most.”
READ MORE: We share our insights on how to choose travel insurance wisely
But before you start Googling for travel insurance, there are certain things you need to know.
What to do before applying for travel insurance
Depending on which country your company is based in, the first thing you will need to do before considering travel insurance is to apply for the appropriate travel exemptions.
For example, if you are based in Australia and you or your employees are required to travel for longer than 3 months, you need to seek an exemption from the Department of Home Affairs and must provide evidence of a compelling reason for your travels in the form of a Commonwealth Statutory Declaration. If you are travelling to New Zealand, however, and have been in Australia for at least 14 days, you will not require an exemption, given that you meet the New Zealand government’s health pre-conditions.
The situation varies from country to country, and it would be advisable to seek travel requirements from your country of origin, as well as your desired destination before purchasing flights.
The common travel insurance mistake
When providing advice on expat travel insurance, Venning says, “Be weary of applying for seemingly affordable cookie cutter travel insurance policies, especially if you plan to stay or live in the new country for an extended period of time. They may not provide the long term protection you need, and more specifically, the majority of leisure travel insurance policies now contain specific COVID-19 exclusions.”
In a world still greatly affected by the coronavirus, you must ask yourself if you want COVID-19 excluded from your travel insurance policy.
As such, if you are an employer, it is ideal not to rely on employees arranging their travel insurance. And if you are an expat being told to arrange your own corporate travel insurance, make sure to discuss with your employer the implications of not investing in the right policies. In times like these, it can be useful to speak to a qualified business insurance brokerage firm who can find the policies that are right for you.
What type of insurance should you be looking for?
Now that you understand the basics, it’s time to start looking for the right insurance for your needs. As a business, you can look at specialist business travel insurance or expat travel/medical insurance, depending on the type of travel you or your employees will be doing. Unlike the typical travel insurance packages, these types of insurances can cover much more, such as medical expenses arising from a pandemic brought on by a virus like COVID-19.
What does business travel insurance cover?
According to Venning, “Business Travel Insurance is suitable for businesses with employees going on a business trip that starts and ends at their home or place of work, such as with Fly In Fly Out (FIFO) workers (for example, workers in mines who travel interstate on a regular basis). This type of protection can provide employees with cover up to a maximum period of 180 days.”
How about expat travel insurance?
Expat travel insurance is useful for expats travelling for work on a more permanent basis. “This policy provides cover for medical expenses whilst in your overseas place of assignment – just like how Medicare or Private Health insurance would in Australia,” says Venning.
Expat medical/travel insurance can provide cover for:
- Medical Expenses
- Hospital Expenses
- Optical and Dental Expenses
- Emergency Evacuation Expenses
- 24/7 Emergency Assistance
- Personal Liability
- Cancellation and Disruption
- Baggage and Travel Documents
- Rental Vehicle Excess
- Personal Accident
- Hijack and Detention
- Political and Natural Disaster Evacuation
- Search and Rescue
- Claims arising from COVID-19
Finding the right policy most suitable for you
The above advice is general advice and doesn’t take your particular situation in mind. When looking for travel insurance for yourself as an expat or for your employees, it’s important not to take what’s being marketing to you at face value. Understand the fine print, as well as the various regulations of the country you’re travelling to, especially in uncertain times. It can be useful to speak to a qualified business insurance broker who can help you find the right travel insurance for your unique situation and budget.
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