What insurances and assistance are linked to your corporate card?

Posted on Sep 23, 2020 12:50:53 PM

Insurance and assistance are among the many advantages that distinguish the corporate card from other payment cards.

There are two main types of insurance that are linked to a corporate card:

  • Business travel insurance
  • Insurance in case of fraud or misuse

These insurances are essential for protecting both the company and its employees.

What protection does your corporate card?

Travel insurance and assistance

The corporate card simplifies the preparation of business trips and guarantees optimal coverage while traveling.

To ensure that your company's business trips run smoothly, taking out excellent insurance and travel assistance coverage is a must.

Without insurance, employees on business trips must use their personal coverage if a problem occurs. This is not without its problems:

  • Individual insurance coverage is often less advantageous than professional coverage.
  • Employees must advance business expenses incurred. In the case of medical care abroad, this can get very expensive.

So how do you take out business travel insurance for your employees?

Without a corporate card:

When travelers do not have a corporate card, you need to take out individual professional insurance for each employee preparing a trip. This is a necessary and time-consuming process.

With a corporate card:

The corporate card greatly simplifies the preparation of business trips as it allows your employees to automatically benefit from travel insurance. The card then provides complete protection for the employee when traveling at home and abroad.

No more steps to be taken by management before each business trip!

To benefit from travel insurance, employees must of course pay for the travel service with the corporate card.

Other cards can give you similar advantages when you prepare a business trip and incur booking expenses, such as a lodged or virtual card.

Generous travel insurance coverage with the corporate card

Travel insurance is therefore linked to the corporate card and simplifies the subscription process. But is this insurance sufficient? What does it include?

When traveling, especially abroad, traditional insurance is least effective. The insurance linked to the corporate card has been specially designed to fill this gap. Its generous coverage is perfectly adapted to business travel.

Coverage includes:

  • Medical expenses
  • Accidents while traveling
  • Transport accidents
  • Hospitalization costs
  • Rescue costs
  • Repatriation costs
  • Treatment following an accident
  • Cosmetic operations following an accident
  • Legal fees
  • Compensation for theft
  • Compensation for delays
  • Compensation for cancellation
  • Compensation for missed connections
  • Compensation for delayed or damaged luggage

Corporate Card Series

Our tip!

Some risks are often forgotten, despite their importance! Remember to check that your insurance also covers:

  • Terrorist risks
  • People outside the company, such as trainees, employees on fixed-term contracts, and external service providers
  • New sharing services, such as Uber or Airbnb

In addition to its particularly broad coverage, the corporate card insurance is also distinguished by the advantageous travel assistance that complements it.

This includes medical assistance and coverage of medical expenses abroad with cash advances. This is a significant advantage, given that treating an appendicitis in the US can cost you 15,000 dollars.

Assistance is available 7 days a week, 24 hours a day, every day of the year. Accessibility of assistance is a priority: a toll-free number allows access regardless of location.

Traveler safety is the responsibility of the employer.

Duty of care dictates that companies are responsible for taking care of their employees. From a legal perspective, the employer is the guarantor of the business traveler’s safety.

Taking out travel insurance for employees who travel is a legal obligation. Every traveler must have their own individual business insurance, and it is up to the employer to take it out. However, taking out insurance is not enough. The employer must also, as far as possible, prevent risks associated with travel.

Keep the following in mind:

  • Anticipate health risks by consulting your national health websites.
  • Inform travelers of necessary precautions and the procedure to follow in the event of unforeseen circumstances.
  • Learn about access to health care and immunization before you leave.
  • Anticipate security risks by consulting your national security websites.
  • Provide travelers with prevention and emergency instructions.

Remember that protecting the employee is protecting the company.

Since the safety of the employee is the legal responsibility of the employer, it is up to the company to pay damages in the event of a problem that it has not properly anticipated or prepared for. The amounts can quickly rise, sometimes to the point of jeopardizing the company's finances.

The best protection, and probably the most effective way for the company to fulfill its duty of care, is to purchase business travel insurance for each employee who travels. Even if no problems arise, protecting employees means offering them the peace of mind they need to perform on the go.

Insurance in case of fraud or misuse of corporate cards

When the corporate card is linked to the employee's personal account, the employee is responsible for their transactions. Insurance against misuse is then of little interest, since the company does not run the risk of fraud: it is not responsible for the payments linked to the card.

Companies therefore often choose by default to back corporate cards to employee accounts. However, choosing to back them to the company's account has many advantages in terms of control and visibility of expenditure.

The fear of fraud or misuse is often a barrier to choosing to link a corporate card directly to the company's bank account.

But is this fear justified? While it’s true that the company bears the responsibility for potentially abusive or fraudulent transactions when the corporate account is debited, the risk of misuse of a corporate card remains relatively rare. For every million euros of spend, the average amount of fraud or misuse comes to 72 euros (Paytech 2018 study).

This is remarkably low. Yet a majority of companies opt for individual responsibility, forfeiting the benefits of better transaction management. To put an end to this concern, insurance against fraud and misuse of the corporate card makes it possible to fully cover the risk when the company is responsible for the transactions.

  • Fraud costs are already very low
  • Misuse insurance protects companies from risk, relieving it of liability and recovering costs
  • Companies don’t spend a single euro on fraud and misuse

With companies protected from misuse, they can now bear responsibility for transactions without fear.

  • Employees don’t have to worry about advances
  • Fewer reports have to be filed
  • The expense management process is simplified

In addition to its insurance against fraud and misuse, the corporate card is largely configurable. This further limits its potential for fraudulent use. Spending limits can be set along with authorized purchase types and suppliers. The employee is obliged to comply with your travel policy as only transactions that comply will be authorized.

Corporate cards have brought their insurance and assistance to a place where both companies and employees can share in the benefits.

Corporate Card Series

Payment Solutions, Corporate Card AirPlus

Jente Geerts

Written by Jente Geerts