Volume 3, Issue 9
Business Travel and Risk Management
Imagine the impact on your business if you or some of your top managers were injured in the same travel accident. The results could be devastating for your company’s future. Although business travel has always involved substantial risk, the globalization of business has expanded travel risk beyond the obvious concerns to include medical emergencies, assault, theft, and terrorism.
This trend has prompted many companies to take a new look at travel-related loss control and insurance. In addition to providing the usual coverage, many businesses are redesigning their travel risk management programs. They may now include protection training for frequent travelers, emergency assistance programs for employees at distant locations, and special insurance for unique risk situations (such as kidnap and ransom insurance).
Divided, We’re Safe?
Many companies try to manage travel risk by limiting the number of employees who are allowed to travel together at one time. Unfortunately, this can be difficult to control. Even if employees take different flights to a common destination, they may end up meeting at the airport and sharing the same car and hotel. The bottom line is that it’s often simply impractical to expect employees to travel separately.
Covering the Bases
As an alternative to traveling alone, a comprehensive travel risk management program may now include any of the following:
Medical Coverage and Income Replacement. Traveling employees are considered to be at work and are therefore entitled to workers compensation benefits if an accident should occur. In fact, workers compensation may provide the primary coverage for medical expenses and income replacement, although for full coverage, a workers compensation policy must be properly amended. Travel insurance that covers emergency medical assistance may provide emergency care for illness or injury, as well as evacuation, if necessary.
Protection Training. This can take the form of seminars that cover a broad range of topics, such as airport conduct, auto travel (including carjacking), and hotel safety, as well as credit card and ATM transactions. Travel risks may be identified, and specific safety tips may be offered on how to handle these situations. As traveling employees become aware of the risks they may face, they can learn how to reduce their chances of being victimized.
Kidnap and Ransom Insurance. For employees who frequently travel to countries experiencing political upheaval or social instability, kidnap and ransom insurance is becoming a standard part of comprehensive travel accident policies.
Teleconferencing and Internet communications have become popular ways for businesses to communicate across distances; however, a handshake carries a lot of weight in the business world, and face-to-face meetings still have great value. By understanding the risks involved in today’s business travel and taking the appropriate measures to manage those risks, you can help protect yourself, your employees, and your investment in your business.