Novice business travelers often assume that workers' compensation insurance will cover expenses if medical care is needed while traveling, but that is not always the case. The law varies between states, but in general, the illness or injury must be directly related to the job to be covered. For some travelers, a business travel medical insurance policy may be a practical choice.
What is covered by travel health insurance?
Some companies offer comprehensive medical coverage plans that provide many of the same services that traditional health insurance covers, such as doctor's visits, hospitals stays, tests, x-rays, and surgery. This degree of coverage is probably unnecessary for people on short trips, but could be a wise choice for those on extended work trips or going abroad. This is especially true for people without regular health insurance coverage. Comprehensive medical coverage is generally going to be the most expensive option.
A less expensive alternative is a policy covering medical emergencies only. This type of plan normally covers emergency room visits, diagnostic tests and x-rays, as well as surgery and hospital stays for urgent and non-elective procedures. In most cases, however, follow-up care is not covered once the business trip ends, even for injuries or illnesses that occurred while traveling.
Medical evacuation may be included in a policy's coverage, but often is offered only as a separate option. This coverage pays expenses for transport from an accident scene to a hospital or between hospitals. In some cases, expenses will be covered to return a patient home, which can run into thousands of dollars if for someone working in a remote area or overseas.
Questions to ask before buying business travel medical insurance:
- Do I need this policy, or do I have existing insurance that will provide the same coverage?
- How does the policy define 'travel'? By definition, travel medical insurance provides coverage while you are on a business trip, but you need to know what the policy defines as the trip. Does it start as soon as you walk out the door, or does it begin after you board your airplane or train?
- Does the insurance company pay the care provider directly for covered expenses, or will you have to pay out-of-pocket and then submit a claim for reimbursement?
- Are pre-existing conditions covered? If the answer is no, how does the policy define pre-existing condition, and is it possible to buy a waiver to obtain the coverage? Claims are commonly denied for pre-existing conditions, but there is no standard definition for the term.
- Is there someone available 24 hours a day, preferably at a toll-free number? Emergencies aren't restricted to normal business hours. It's vital that the company can be reached at any time so that treatment isn't delayed or denied pending insurance verification.
- Is it in writing, and where can I find it? A sales pitch from an agent or a website is not part of a policy, it's marketing. Anything not in writing on the policy itself is not enforceable.
Other resources:
Is your illness or injury work related?
Travel insurance: the benefits and limitations
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