However, they can always have extra expenses with unforeseen incidents that may occur during the employee’s trip, whether due to lost luggage, medical expenses in eventual hospitalizations, or even more serious situations.
Responsible for the integrity of the employee, the company is obliged to bear the costs in cases of incident during this period. In order to avoid large expenses resulting from unforeseen situations, it is essential for the company to take care of itself with insurance that offers the necessary assistance to the organization and the employee in different needs.
What is Corporate Travel Insurance?
Within the Travel Insurance segment, there is Corporate Travel Insurance, a specific product aimed at business travel, with various coverages for unexpected events or illnesses. Currently, most companies offer corporate travel insurance to their employees.
Others, however, are still not aware that the risk of an incident can impact both the integrity of the employee and the company itself.
A critical aspect that must be kept in mind is that employees who travel for work are in business activity, in which the organization itself is responsible for these people and procedures, and the adoption of insurance brings much more peace of mind for both sides.
How does Corporate Travel Insurance work?
There are two types of Corporate Travel Insurance, always seeking to offer the product that best fits the needs of each client:
Bank of days (ATP)
Product suitable for companies that want to control the number of days used in travel.
The customer hires a certain amount per year and, as he uses it, the days used are deducted from the available balance. Through an online tool, the customer can also issue reports on the trips taken.
The coverage of this insurance is established with the contracting company according to the executives’ travel history in previous years.
With this product, the customer has the convenience of having a special plan for the needs of his company. It is also annual, but has a more competitive price compared to the Bank of Days for medium and large travel demands.
The proposal is customized based on the information declared by the client (annual number of travelers, average travel per executive and length of stay on the trip).
It is a great benefit for the company’s travel management, as there is no effort and operational risk of issuing certificates for each trip.
Pay per Use
The main advantage of this product is the payment of business travel insurance only after use and according to the number of days informed in the previously issued insurance certificate, unlike what happens in the Bank of Days modality.
What is the Corporate Travel Insurance coverage?
Check out the insurance coverage below, which guarantees a work trip with complete peace of mind:
Trip cancellation or interruption; delay, loss or theft of baggage; connection loss; flight delay.
By violent act; on public transport; in natural disasters; for ATM theft; medical and hospital expenses; emergency dental expenses; Pharmaceutical expenses; accidental death in travel and total or partial disability in travel.
Transport and Accommodation
Medical removal or repatriation; funeral repatriation; extension of stay; companion in case of prolonged hospitalization; accommodation and return of the companion; return of the insured; return of minors; early return for residential incident.
Optional inclusion of spouse and children.
Sureties and legal expenses; legal expenses.
How to reduce costs in corporate travel?
In addition to having the protection of Corporate Travel Insurance, it is important that the company has an organized plan to optimize costs throughout the business trip process, from the purchase of the ticket to the employee’s stay and travel at the destination.
Here are some tips from experts to reduce corporate travel costs:
Buy tickets at the right time
Generally speaking, more thorough planning is required when it comes to corporate travel than leisure travel. With this planning, it is possible to define in advance which and how many employees will travel in the future and, thus, purchase tickets in advance.
Be aware that in some cases, corporate travel may coincide with high tourist season to certain destinations and tickets may have a higher value than usual. Check with your internal customers if there is a possibility of changing the date or look for alternative times.
Don’t buy tickets too early
Airlines, for example, are starting to charge higher fares to reserve seats on tickets purchased far in advance because of seat reservations.
For domestic flights, the ideal is to buy tickets 30 days in advance. When it comes to international flights, it is best to purchase 90 days in advance.
Choose strategic partners
In addition to airfare, travel at the destination itself often consumes a large part of the travel budget. To reduce this cost and offer more peace of mind and security to your company’s employees, establish partnerships with urban mobility providers.
This tip also goes for hosting, which is another expense that can eat up a big chunk of your budget.
Partnering with hotel chains can, for example, allow the daily rate not to fluctuate due to the high season and also allow accounts to be settled only at the end of the month.
Have an effective travel policy
A good travel policy should make it clear which expenses are covered by the company, as well as their maximum amounts. This allows the employee to choose, within the amount he can consume, what is best for him, while allowing the company to save.
In addition, the company must have a travel approval process in order to establish which trips are actually needed.
If the volume of travel is large in your company, hiring a specialist or an outsourced partner can be an advantage, as this team will plan in advance all the details of the trip, as well as be aware of discounts and promotions.
reward the economy
Letting the employee choose how to spend, within a pre-established limit, can bring savings to the company.
This cost cutting can be even greater if combined with a savings reward policy, which can range from shopping vouchers to days off.
This policy creates healthy competition among traveling employees and reinforces a culture of austerity within the company.