What is travel insurance for business travel?
Travel insurance pays back some or all of a trip's costs when something unexpected happens before or during it. This cheat sheet covers how to think about it and what to check before you buy. The coverage types are compared further down.
How to think about it
- It's a set of coverages. Common types include trip cancellation, interruption and delay, travel medical, medical evacuation and baggage loss or delay.
- Each policy draws its own lines. Every policy sets its own limits and lists the situations it will or won't cover.
- Check what you already have. Some people buy travel insurance because their health insurance doesn't cover them outside their home country. Some credit cards offer trip cancellation and lost baggage coverage.
- It supports duty of care. Insurance covers specific financial risks. It doesn't replace an employer's broader duty of care to travelers.
What to check before you buy
- The exclusions. Policies may exclude pre-existing conditions, pandemics, civil unrest at the destination and activities the insurer considers dangerous.
- The timing. If you wait until a storm has been named, the policy likely won't cover claims related to it.
- Medical approval rules. Ask whether you need the insurer's approval before getting medical care.
- Card coverage. Check your card's policy and decide whether what it offers is enough.
Types of travel insurance
| Coverage | What it pays for | Worth knowing |
|---|---|---|
| Trip cancellation, interruption and delay | Prepaid trip costs if you cancel or cut a trip short for a reason the policy covers | The policy lists which reasons count |
| Travel medical | Short-term medical care if you get sick or injured while traveling | NAIC describes it as secondary health and accident coverage |
| Medical evacuation | Services like emergency flights or transport to the nearest hospital | Repatriation, a separate coverage, pays to return remains |
| Baggage loss or delay | Loss of baggage or personal items | Most homeowners policies cover personal property lost or stolen while traveling |
| Cancel for any reason (CFAR) | Cancellation for any reason, not just covered ones | Usually bought within a set period after booking, and pays back only part of the trip cost |
Questions
What does travel insurance cover?
It depends on the policy. Coverage types include trip cancellation, interruption and delay, travel medical, medical evacuation, repatriation, accidental death and dismemberment, and baggage loss or delay. Each policy sets its own limits.
Do business travelers need travel insurance?
The National Association of Insurance Commissioners (NAIC) says only you can decide if travel insurance is right for you. It notes that some people buy it because their health insurance doesn't cover them outside their home country, and suggests checking whether your credit card's coverage is enough.
Is travel insurance the same as duty of care?
No. Duty of care is the ongoing responsibility to protect employees before, during and after business travel. Travel insurance covers specific financial risks and supports that obligation without replacing it.
Who regulates travel insurance in the US?
State insurance departments oversee travel insurance products. The NAIC adopted a travel insurance model law in December 2018.
Sources
- National Association of Insurance Commissioners, Should I Get Travel Insurance?, accessed November 2, 2026.
- NAIC Center for Insurance Policy and Research, Travel Insurance, accessed November 2, 2026.
- National Association of Insurance Commissioners, Taking a Trip? Information About Travel Insurance You Should Know Before You Hit the Road, accessed November 2, 2026.
- Engine, Duty of Care Travel Management: Policy Guide and Safety Checklist, accessed November 2, 2026.
- Engine, Duty of Care for Business Travelers, accessed November 2, 2026.