Blanket International Business Travel Insurance is a necessity for any global employer with more than a few international trips a year.
Whether you have 3 or 4 employees spending 20 weeks a year (in total) traveling internationally or you are a Fortune 500 company, you need an international blanket travel insurance program. The key is blanket and automatic protection for anyone that leaves behind their home country to travel on business.
Four Categories Needing International Blanket Medical Insurance
ONE: International business travelers traveling outside of the United States for trips under 90 days. Relying on the U.S. medical plan instead of an international business travel insurance plan, this is a big mistake.
U.S. plans cannot respond to emergencies Americans may have while traveling abroad. These plans are very cost effective and average about $40 per week of travel, about the cost of a business lunch for one in London in USD. We are amazed by companies that allow their business travelers to rack up $5,000 bills per trip and won't pay $40 to protect the employee.
Group Two: Foreign nationals traveling into the United States on Business. Regarding international risk best practices, this group has to be taken care of first. Foreign nationals have host country private medical plans for State backed social security schemes that will not extend coverage on international travel and especially into the United States. If something happens to a foreign national in the U.S. and there is no international blanket medical coverage, the employer will assume the liability and it will be uninsured and unreserved.
Group Three: Foreign nationals traveling on business away from their home country but not to the U.S.
Group Four: U.S. citizens traveling outside of the U.S. for over 90 days.
International Business Travel Insurance: The Benefits
What are the primary benefits that should be considered.
The staple benefit is global travel medical insurance. This is typically put on as a supplement to the home country medical plan and should not be put in place only for those that have no coverage when they travel internationally.
Does the existing medical plan “work overseas?” Can it respond in an emergency? Is the employee “out of network while abroad?” Does the U.S. plan only cover “emergencies” outside the U.S.? There are very inexpensive international travel plans on the market that can be purchased for a single trip, or annually. These carriers actually can work with overseas doctors and hospitals and eliminate most problems.
Medical Air Evacuation and Repatriation (don’t skip this section if you have a plan now): What if a medical emergency occurred abroad, is there an existing program to “medivac” the employee to a local center of excellence? We have seen ICU medical flights cost over $50,000. The real need here depends on where the employee travels of course. Ie. Sudan (large need) vs. London (almost no need). ** If you have an existing program are you aware of the “nearest appropriate facility” language that is in all insured medivac plans? More importantly, does your employee and their dependents understand this clause? It can be a very ugly situation if an employee and their dependents are demanding to be flown back to the U.S. when your provider is recommending Geneva, and that’s all they are approving under the insured contract without an additional $20,000 ex-gratia payment from you !
Expatriate Life and AD&D: Are you sure your U.S. life plan would honor a claim incurred overseas? In most cases the answer is yes and we don’t mean to scare you, but again there may be limitations depending on how long the employee is overseas, and where they are traveling to (what countries). For example, most life plans would exclude “war risk” claims and this many include acts of terrorism. It does not mean your employee needs to be in a war zone to have a claim denied. Some life plans may not pay if an employee spends more than a specific period of time overseas. The point is, have you documented with your life carrier that people are routinely traveling abroad.
Kidnap and Ransom Insurance and International Security: We can provide a quote for a high quality security program for expatriate security or for international travelers. . Do you have an existing plan now? (“security services” through your medical evacuation company is not an existing plan in almost all cases) What if you received a call at 2 a.m. with information that an employee has been threatened or abducted? Insurance is not always necessary, but a plan certainly is. Not planning and documenting exposes the company to large liabilities.
Foreign Workers Compensation Insurance: In many cases you will have coverage but every carrier and every “State filing” is different. Are you sure an employee hurt “on the job” while traveling internationally has coverage? What if traveling employees are not U.S. citizens?
Your commercial liability policies: If the person, acting on behalf of your company in an official role, causes damages or liabilities, will your existing policy cover claims made in the foreign locale and defend you abroad? This needs to be checked because many corporate liability policies are limited to U.S. and Canada only. What is the territory clause in your insurer’s State filed policy language.
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