Illness or injury is the last thing you want to happen while travelling outside of Canada. Which is why the right type of travel insurance needs to be at the top of the packing list.
“Medical costs can be significant,” says Kirk Davis, an employee benefits advisor and founder of Davis Benefits and Pensions in White Rock, B.C. “You want to be proactive.”
Twice a year, in the spring and just before winter travel season, Davis’s team sends out a communiqué to all their clients regarding emergency travel coverage, which they can share with plan members. “It’s so that employers and plan members are aware of any changes—before they find themselves out of the country,” says Davis.
Davis knows that with everything they do, it can be tough for plan sponsors to stay on top of keeping their members in the loop about travel coverage. But it’s a vitally important aspect of good governance. And a mix-up over an insurance claim could lead to thousands—or in some cases, millions—in out-of-pocket costs.
Whether it’s a policy for business or personal travel, he says it’s always a good idea to have coverage that’s up-to-date.
Plan sponsors may also want to consider a policy where there is no pre-existing condition limitation. Currently, just one provider in Canada offers that option, notes Davis, who recalls a situation where a client’s employee was travelling for business last fall in Texas and had a medical issue. Thankfully, “they were covered through a product that was outside standard coverage with no pre-existing conditions,” he says.
When it comes to business travel, firms may also have to send employees into areas where they might need to be evacuated in case of an emergency. Having up-to-date emergency travel coverage is critical. “You want to make sure they can be extracted,” says Davis.
Travel insurance checklist
If they haven’t already done so, plan sponsors can—and should—enlist their benefits advisor to help them stay on top of any changes in travel insurance, review and, if need be, update their own policy for business travel. Benefits advisors can also help communicate changes to employees regarding insurance for both business and personal travel.
“The most important thing to communicate is potential coverage restrictions,” says Davis.
Communications to employees should occur at least once a year; twice a year is best, says Davis. Communications about out-of-country/emergency travel coverage should include:
411 on insurance provider
As carriers can change, it’s important to state the name of the insurer and all contact information, including their website, app or phone numbers.
Plan members should be encouraged to log into the insurer’s portal and check the section that gives travel updates. They should also obtain a copy of the current benefit booklet, group benefit card and plan member payment cards. Encourage them as well to contact the insurance company with any travel questions ahead of departure.
Check destination details
Davis says that while out-of-country medical assistance is in place for most countries, if a vacation spot has a travel advisory in place—and is listed under “Avoid all travel” or “Avoid non-essential travel”—employees should contact their insurance company ahead of travel to verify that they will be covered under their company policy. Remind them to check the Government of Canada’s Travel Advice and Advisories website before departing.
Warn about pre-existing conditions
Urge plan members to check what constitutes a pre-existing condition. Davis knows of one case where an employee left Canada with a cold and ended up in hospital with pneumonia—and the cold was deemed a pre-existing condition. As well, review the fine print around the “stability” of health pre-departure; for example, plan members may need to verify their medical condition hasn’t changed, nor have they been prescribed a new medication.
Who makes the call
As a person’s medical history is confidential, remind plan members that only they or their dependents should call the insurer to confirm coverage.
Non-standard coverage
Plan sponsors with employees who travel frequently on business—including to off-the-grid locations— may want to consider purchasing additional group coverage that does not require a stability clause or stipulate pre-existing conditions, recommends Davis.
The most important thing for plan sponsors—working with their benefits advisor—is to make sure that plan members have the most current information about their emergency travel coverage and the tools they need to make the best decisions regarding their upcoming trip, summarizes Davis.