At the end of February, conflict erupted across the Middle East in the wake of American and Israeli strikes on Iran. Retaliatory attacks on Israel and US-allied Gulf states followed immediately. Although a fragile ceasefire is currently in place, the entire region remains highly volatile.
The outbreak of hostilities derailed direct travel plans to and from the region as well as disrupting many others by preventing scheduled stopovers.
While fewer people are choosing to travel to the Middle East at this time, there are still those who need to be there and this is especially true for Third Sector organisations such as humanitarian and welfare agencies.
These organisations generally have specialised travel policies in place and are very focused on the cover they buy. But even for those with less frequent and more mainstream travel itineraries, there are still considerations they need to manage when selecting travel insurance.
Mainstream concerns
A perennial issue for Third Sector organisations is the difference between employees and volunteers. Insurers can be fickle in their insistence that unpaid volunteers don’t count as employees and it’s important to check that the insurance policy wording extends protective cover to volunteers.
Similarly, it’s important to provide full details of pre-existing medical conditions and any prescribed medication needs. Such omissions and inaccuracies entitle insurers to invalidate the policy, although neither party wins in this scenario – The insured are left out of pocket in the event of a claim and insurers suffer reputational fallout.
These seemingly straightforward issues are potential pitfalls for many Third Sector organisations because travel insurance arrangements are often left to the individual. Corporate business travel policies tend to have a minimum premium requirement and will provide cover for multiple trips. Such policies don’t offer good value if an organisation only has one or two team members going on one or two trips.
This leaves individuals organising their own cover rather than the policy being arranged by a broker or in-house insurance buyer. In such circumstances, it’s easy for people to overlook small details that can end up costing them dearly.
Despite occasional and not always justified bad press, insurers can and do provide effective, responsive cover – even for travellers to the most dangerous destinations. Early engagement and pre-trip approval are key to ensuring such outcomes.
The Foreign, Commonwealth and Development Office provide travel guidance and going to a country to which the FCDO has advised against all travel will generally invalidate a policy. But your insurance provider may offer cover if you speak to them before travelling and, if not, there are other specialists who will offer insurance in such circumstances.
Broad scope of specialised cover
The majority of travel insurance claims are for cancelled or curtailed flights and lost luggage. Such losses tend to be more inconvenient than debilitating and it’s easy to forget the lifesaving and highly specialised assistance offered by most policies.
The breakout of the Iran war left some people stranded in a volatile and dangerous environment. In such situations, it’s simply not possible to take a taxi to the airport and board the next flight home. Insurance provides access to professionals who can make emergency transit arrangements in combat zones or in the wake of a natural catastrophe. Putting such plans in place is almost impossible as an individual traveller and, although not often needed, is a lifeline in these desperate situations.
The medical assistance provided by travel insurance is also an infrequently used but hugely valuable component of cover. Some countries such as America will not provide medical treatment without up-front payment or proof of insurance.
Evacuating a critically ill patient from remote locations with limited medical capabilities can be the difference between a positive or catastrophic outcome. And such specialised transfers are hugely expensive and difficult to arrange without insurance. In the worst-case scenario, insurers will arrange for an insured person’s body to be repatriated in the event of their death.
On a more upbeat note, if the insured is a business owner or director, travel insurance will often cover their spouse and family if they are accompanying them on a trip. Similarly, many business trips have a recreational element, and this is also generally covered, assuming the primary reason for travelling is business.
But the same doesn’t apply in reverse. Personal travel insurance will not provide cover for business trips, and this is a potential banana skin for infrequent business travellers who might think they’re already covered.
Worth a second look
Travel insurance is a product with which most people are familiar, but there are still plenty of wrinkles and blind spots that can prove costly – especially when it comes to business cover. Taking a moment to check you’ve got the right cover in place will avoid any mishaps. If you’d like support in finding the right policy or just want to run a query past us, then please get in touch with our highly experienced team here at Keegan & Pennykid.
