Why HR Leaders Cannot Ignore Travel Insurance Gaps
Sending employees abroad for conferences, client visits, or secondments is routine, but Human Resource (HR) teams often underestimate the hidden risks in travel insurance. Purchasing a standard policy online may seem convenient, yet many policies contain exclusions that leave companies financially and legally exposed.
Without proper coverage, what starts as a routine business trip can become a costly crisis, medical evacuation fees, denied claims, and employer liability are just a few examples.
This article explores the most common travel insurance gaps for South African companies and international destinations, with practical steps HR leaders can take to protect employees and their organisation.
Top Travel Insurance Coverage Gaps Affecting Businesses
1. Pre-Existing Medical Conditions
Many online policies automatically exclude chronic illnesses or previous diagnoses. For example, an employee with controlled hypertension may face denied claims if complications arise overseas.
Practical Step: Always disclose medical conditions and confirm whether corporate or group policies extend coverage to pre-existing conditions.
2. High-Risk or Non-Standard Activities
Team-building exercises or client entertainment may involve scuba diving, skiing, or other adventure activities. Standard policies usually exclude these unless additional riders are purchased.
Tip: Catalogue planned activities before purchasing a policy and include coverage for high-risk events if applicable.
3. Extended Trips and Multi-Country Assignments
Consumer-level travel insurance often limits coverage to 30–90 days. Employees on extended assignments, multi-leg trips, or seasonal contracts can suddenly lose protection mid-journey.
Tip: Choose policies that explicitly cover multiple destinations and extended durations.
4. Medical Evacuation and Repatriation
Emergency evacuation costs can easily reach tens of thousands of dollars. Many budget policies cap coverage far below real-world expenses, leaving companies to cover the gap.
5. Employer Liability Gaps
If an employee’s personal policy fails to pay for a work-related incident, the employer may face legal action or reputational damage. Ensuring corporate policies include employer liability is crucial.
Key Questions HR Should Ask Before Purchasing a Policy
- Does the plan explicitly cover work-related activities?
- What counts as a pre-existing condition, and how should it be disclosed?
- Are multiple destinations or long-term trips included?
- What are the limits for medical evacuation and repatriation?
- Is 24/7 multilingual emergency assistance guaranteed?
Getting written, clear answers is essential due diligence.
Schedule a Free Travel Insurance Consultation to review your corporate policy before the next business trip.
How HR Teams Can Close Coverage Gaps
Conduct a Travel Risk Audit
Document employee roles, typical destinations, trip durations, and planned activities. This helps identify policy weaknesses before an incident occurs.
Choose Corporate or Group Policies
Policies designed for corporate travel often include stronger evacuation, employer liability, and coverage for extended assignments.
Add Riders for High-Risk Activities
Do not rely solely on a standard consumer policy for elevated risks. Custom riders protect both employees and the company.
Document Travel Approval Processes
Require medical disclosures where relevant and obtain sign-off for high-risk trips to maintain internal compliance.
Train Managers on Emergencies
Ensure managers know exactly who to contact and how claims are handled to reduce delays and errors.
Special Considerations for Common International Destinations
South African companies frequently send employees to Europe, the United States (US), and Africa. Coverage gaps differ by destination:
- Europe: High medical costs and strict visa requirements mean policies should cover emergency healthcare and repatriation fully.
- United States: Medical evacuation and liability coverage are critical; local hospitals often have very high fees.
- Africa: Remote assignments may require access to private clinics, helicopter evacuation, or multi-country coverage for seasonal contracts.
Corporate policies can often be tailored for these destinations, ensuring employees are protected wherever they travel.
FAQ
What is a “coverage gap”?
A gap is any scenario the policy does not cover, such as pre-existing medical conditions, high-risk activities, or trips exceeding the maximum duration.
What is gap cover?
Gap cover supplements a primary policy, for example topping up medical evacuation or adding liability coverage. Scope varies by provider.
What qualifies as trip interruption?
Typically, non-refundable expenses are reimbursed if a journey is cut short due to illness, injury, natural disasters, or government-imposed travel restrictions.
Which corporate travel insurance is best in South Africa?
“Best” depends on company size, destinations, trip length, and activities. Human Resources (HR) should consult a specialist broker who compares policies, evacuation limits, and coverage inclusions.
What should HR do if a claim is denied?
Escalate immediately to the broker, document all incidents, provide medical and travel records, and be ready to fund emergency care. Use the case to update future travel policies.
Clarity’s Approach
At Clarity Employee Benefits, we design corporate travel insurance solutions that close coverage gaps for South African and international trips. Our team works directly with HR leaders and business owners to:
- Analyse current employee benefits and travel patterns
- Recommend comprehensive, compliant coverage
- Provide 24/7 claims and emergency support
Protect your people and your company before the next boarding pass is issued.
