Is Business Travel Insurance Necessary for SMEs?

business travel insurance

As an SME, business travel can be important to the success of your business.  You may have to meet with interstate or overseas customers and suppliers, attend meetings, and participate in professional training that involves flying to other parts of the country or around the world.

While traveling is often necessary for conducting business effectively, it brings its own set of unique risks that, if not properly covered, could be costly.  Business Travel Insurance covers you, your company’s directors, and employees against disruption when they travel abroad or domestically.

What does Business Travel Insurance Cover?

The following is a list of the types of things that may be covered by a Business Travel Insurance policy.

Business Travel Insurance Cover

Medical Emergencies & Evacuation

You never know when an employee may become ill or injured when they are traveling.  Hospital costs can add up quickly. If he or she needs to be transported back home for treatment (medical evacuation), it can be extremely costly.

Trip Cancellation or Early Return

There can be many unforeseen circumstances that could cause a trip to be cancelled or cut short, such as illness or an accident or the death of a close relative.  With last minute changes, you may not get a refund and the business can be left paying costs for a trip that has not been taken.

Loss of Baggage, Travel Documents & Personal Belongings

Baggage gets lost all the time.  On business trips, expensive items such as laptops and mobile phones often have to be taken and are expensive to replace or repair if they are damaged, as are travel documents.

Transport Cancellation

The reason for a cancelled trip may be completely out of your control, such as cancellation due to extreme weather or environmental disasters or even employee strikes.  This can leave an employee stranded, needing to come up with alternative travel plans or cancel the trip altogether.  If you’re traveling to an area where there is political unrest, foreigners may be forced to evacuate.

Laptop Damage

With more and more airlines instituting a ban on laptops in the plane’s cabin, passengers are being forced to check their laptops with their baggage where they can be damaged.


If a company that you’ve booked travel plans with goes bankrupt, you may be able to recoup your losses.

Kidnap and Ransom

Unfortunately, in some countries, the kidnapping of foreigners is a real occurrence.  Business Travel Insurance will help to cover the costs associated with this.


As with any kind of insurance coverage, it’s important to know what you have and what you need before you need it.  As you’re making your travel plans, talk to your insurance agent to ensure that you have adequate coverage to protect you and your employees against any problem that may arise along the way.

Call PSC Direct and we can assess your travel risks and provide you with the right amount of Business Travel Insurance to protect you, your employees, and your business.