Business travel returns. Are you protected from risks?

Business travel is returning to pre-pandemic levels, but the patterns, priorities and expectations of business travelers are in many respects changing. With those shifts come evolving risks as well.

As businesses examine their travel policies and plans for the near future, understanding today’s travel landscape is key to mitigate financial risks and protect and support employees.

Return of business travel

Large companies aren’t the only ones sending their people back on the road. In fact, many of today’s travelers own or work at small- to medium-sized businesses (SMBs).

According to a 2023 survey of global corporate travel managers by Morgan Stanley Research, smaller companies are leading demand for corporate travel. More than two-thirds of companies surveyed with under $1 billion in annual revenue expected travel budgets to increase, compared to 41% of companies with annual revenues over $16 billion. And 32% of smaller companies said their travel budgets had already returned to pre-pandemic levels.

Relationships remain key

Despite the rise of remote and hybrid work, companies are in many cases reverting to traditional ways of doing business that have been successful for them in the past. In a May 2023 Harvard Business Review survey of 425 business respondents familiar with their organizations’ business travel, 84% agreed that tangible business value comes from trips to meet with clients and prospects.

The desire is there for in-person connection, collaboration and relationship-building with customers, colleagues and partners, but the approach to trip planning is changing.

Maximizing trips

According to a recent Global Business Travel Association survey, 62% of respondents said cost management was one of the top strategies for travel managers in 2024. As travel costs continue to rise, and return on investment increases in importance, many companies are extending the length of trips to maximize time on the road — and in some cases, to cut carbon emissions and minimize their environmental footprints.

“Bleisure” — extended trips that blend business and leisure activities — also is on the rise, and business travelers are increasingly incorporating opportunities to bring friends or family on their trips.

Protecting your people — and your business

Shifting travel trends also create new and complex risk scenarios. Preparing for those risks and demonstrating a commitment to fulfilling duty-of-care responsibilities for employees is increasingly critical.

Today’s business travelers expect their employers to protect their physical safety, as well as their mental and emotional wellbeing. In addition to unexpected medical issues and travel disruptions, businesses also must be prepared to support their employees through incidents of geopolitical unrest, street crime and other risks.

Considering the direct and indirect financial consequences that can result from such emergencies or disruptions, organizations are increasingly recognizing the need for robust protective measures for their traveling employees and businesses. That’s why many travel and risk managers are securing or enhancing Business Travel Accident (BTA) insurance policies to cover their people and help ensure that unforeseen incidents in this new travel world don’t turn into financial disasters and disrupt the continuity of their business.

Business Travel Accident insurance offers robust protection

This coverage helps employers meet their duty of care for their people, whether they are traveling locally, out of state or out of the country. Should an employee fall ill overseas, have an accident, or need immediate travel or security assistance, BTA insurance, coupled with travel assistance services, becomes their lifeline. The combination provides real-time support to employees and employers, whether their business travel is around the corner or around the globe.

BTA insurance also fills the gaps left by workers’ compensation. It can be a common misconception that workers' compensation is a catch-all for any travel-related incident, but the reality is that incidents occurring during business travel, including to and from the airport or while on personal excursions, may not be covered, in whole or part. BTA insurance helps ensure that employees are protected from the moment they leave their doorstep or place of work until they return.

Investing in BTA insurance is more than a financial decision. It demonstrates a commitment to business sustainability and creating a culture of care and responsibility. In today's competitive business and talent landscape, committing to this level of protection and support for business and employee welfare while traveling can make a significant difference in business success and attracting and retaining top talent.

Find out more about travel risks, BTA insurance coverage and our capabilities here.