A growing number of U.S. businesses are finding that employee business travel is an essential element of operating in today’s market.
Whether travel is international or domestic, by car, plane, or train, and whether it’s for a meet-and-greet, client meeting, or seminar, employers often have employees on the roads and in the skies. Most destinations don’t put employees at high risk, but travel by its nature carries some degree of risk.
Business Travel Accident (BTA) insurance is one option employers can use to protect employees and their families from financial repercussions after an incident that occurs while traveling on business.
Employers should keep in mind that BTA plans aren’t intended to cover ordinary commuting to and from an employee’s regular work location.
Employers will usually find that BTA coverage is very flexible, as many carriers allow employers to tailor coverage to their specific travel needs; for more on employer coverage options, see Business Insurance Essentials. Employers can decide whether to cover an employee only during the ride or flight to a destination or for the entire trip, and they can limit coverage to employees who travel regularly.
Most business travel accident policies include the following key features:
- Emergency evacuation services
- Repatriation of remains
- Relocation benefits — the employee and any family traveling with the employee are typically covered during travel related to a relocation.
- Pre-trip planning — visa and passport assistance, information on local culture and currency, and immunization recommendations for the destination.
- Accidental death and dismemberment (AD&D) — if a covered dismemberment or accidental death occurs while the employee is traveling on business, the policy pays a set amount for loss of limb, sight, hearing, paralysis, or other covered losses, or a percentage of the face amount to survivors for death. Policies normally specify a maximum AD&D face amount per employee and an aggregate maximum for any single accident involving multiple employees. Terrorist acts may affect maximums, and BTA benefits are generally paid independently of other coverages such as workers' compensation.
- Emergency medical — upfront payment of medical bills (often required abroad), and transportation to an appropriate medical facility pending reimbursement by the employee’s primary medical plan.
- Emergency travel assistance — help with lost or stolen travel documents, emergency cash advances, legal and medical referrals, assistance with lost luggage, and interpreter services.
In summary, BTA is an insurance option that can enhance a business’s benefit package. Existing and prospective workers often weigh benefit offerings heavily when evaluating jobs, and because business travel adds risk and inconvenience, supplementing benefits with BTA coverage can help retain employees and attract those willing to travel.
For guidance on evaluating and selecting coverage options, see Choosing the Right Insurance for Your Business. If you want specific, personalized guidance, talk to an agent.
Frequently Asked Questions
What does Business Travel Accident (BTA) insurance cover?
BTA typically covers accidental death and dismemberment during business travel, emergency medical evacuation, repatriation of remains, and travel assistance services.
Is BTA the same as health insurance or workers' compensation?
No. BTA is supplemental and pays benefits for specified events during travel; it does not replace primary health insurance or workers' compensation, though benefits may be paid independently of those coverages.
Does BTA cover regular commuting to work?
Generally not — BTA is designed for travel on behalf of the employer, not ordinary commuting between home and the usual workplace.
Are family members covered when an employee travels?
Some policies include coverage for family members traveling with the employee, such as relocation travel benefits, but coverage varies by policy and must be confirmed in the plan details.