Protecting Your Travel

There is much thought that goes into planning an exciting trip, but when it comes to travel, careful planning only takes you so far. Travel insurance can help fill the gaps, helping you recover costs or get specialized support when the unexpected strikes, and when your employer-sponsored health plan doesn’t travel with you out of the country.

According to the U.S. Travel Insurance Association, travel insurance typically costs between 4% to 8% of a total trip, yet can be one of the most underutilized insurance options. Squaremouth.com recently reported that the average trip cost is nearly $7,000, and that the average premium for insuring a trip is just under $300. With the cost of travel both domestic and international on the rise, it is more important than ever to ensure that trips are covered. 

Let’s deconstruct the top four myths and misconceptions about travel insurance and explain how it can play a critical role in the event a trip takes an unexpected turn.

Misconception #1

I offer my employees major medical insurance. That will always cover any medical expenses if they are injured or sick while traveling.

Reality

Medical insurance may not cover medical expenses incurred while traveling outside of your network. Plus, many international medical providers and some providers in the U.S. require payment or guarantee of payment upfront before providing service.

Misconception #2

Travel emergencies are rare. I have an unexpected issue, I can troubleshoot on my own.

Reality

According to a recent report, 91% of survey respondents say they have plans to travel domestically in 2024, with four in 10 (40%) planning to travel more than they did in 2023. Additionally, half (50%) of consumers are planning to travel internationally this year. Having 24/7 access to a network of experts to help find quality care, replace lost or missing medication, coordinate medical/security evacuations, or even research and coordinate changes in travel arrangements can prove invaluable.

Misconception #3

Delays, cancellations, or interruptions might happen. If they do, the supplier (e.g., airline, cruise line, tour operator) will always reimburse me or cover my expenses.

Reality

Travelers often think that a supplier will take care of issues that arise with regard to delays, cancellations, and interruptions. That may be true in some cases; however, those suppliers have specific terms and conditions that outline the situations they may provide reimbursement. There are circumstances in which the travel supplier doesn’t have obligations within their terms and conditions to reimburse the traveler, especially for weather-related situations that may occur.

Misconception #4

I’ll just purchase travel insurance directly from my travel supplier—there’s no difference from working with a third-party insurance provider.

Reality

Purchasing travel insurance directly from a supplier (e.g., airline, cruise line, tour operator) is certainly an option; however, third-party travel insurance providers can offer more comprehensive coverage and valuable travel assistance services. If travel insurance is purchased directly from a supplier, employees should review terms and conditions carefully to fully understand excluded scenarios.

What to Look for in a Policy

There are a lot of travel insurance options to choose from, leaving many overwhelmed with where to start? Here, is a checklist of key benefits to look for in a travel insurance policy to help ensure you get the best value:

• Comprehensive Coverage: If traveling more than 100 miles from your residence multiple times throughout the year, you could consider an annual travel insurance plan. By doing so, it may provide you a more cost-effective solution.
• Accident & Medical Expense Coverage: Depending on your employer-sponsored major medical coverage, medical insurance may not provide coverage for expenses incurred while traveling internationally. That’s why accident and medical expense benefits are a key component of any travel insurance plan.
• Trip Interruption or Cancelation Benefits: Trip cancellation, interruption, or delay are rarely foreseeable events and often disrupt the entire trip. Some travel insurance plans provide reimbursement for forfeited, pre-paid non-refundable trip costs and additional covered transportation expenses for trips that are canceled or interrupted due to covered, unforeseen events.
• Baggage & Personal Effects Coverage: If bags are delayed or lost, your travel insurance policy can help get the trip back on track. Baggage delay and lost baggage benefits can reimburse for the reasonable additional purchase of essential items during your trip if baggage is delayed or misdirected by a common carrier for 12 hours or more, or if the bag is lost entirely.
• Accessible Support: A travel insurance plan that includes access to a 24/7 travel and medical assistance team can provide extra peace of mind. It’s also important to review the technology and tools a travel insurance provider offers to help connect with them when needed.

The Bottom Line

When it comes to travel, your employees can only plan for so much. Travel insurance helps fill the gaps and can offer you extra confidence knowing that you have the insurance protection and expert support needed to navigate the unexpected. For more information on how to ensure your employees and their travels are protected, or for more information on Chubb, reach out to your AssuredPartners team.