There are many things that come in pairs because they make sense – peanut butter and jelly, salt and pepper, shoes – the list goes on and on. Travel insurance for business travel is no different. There are inevitable changes to business travel or circumstances that arise while away from home. One way to protect the financial investment of business travel is to consider travel insurance.
Many vendors offer travel insurance. Although it is generally more appropriate for international travel, it’s important to evaluate domestic options, too. Benefits and cost vary based upon coverage options. When determining your business need for travel insurance, consider:
- Cancellation/Changes – What are the penalties with the airline for changes? Do those costs outweigh the cost of coverage offered by insurance?
- Baggage – What professional business property will be transported and how valuable is it to the business?
- Medical – If you are hurt or injured while traveling, what would it cost for you to be treated? Depending on your location, does medical evacuation insurance make sense?
In addition to the comfort provided by travel insurance, there may be tax savings for businesses or individuals to make it a good decision. If you are an employee who is not reimbursed for business travel, any expenses greater than 2 percent of your adjusted gross income can be deducted for tax purposes. However, if you are self-employed, you do not need to meet the 2 percent threshold.
The IRS has several publications regarding business travel expenses, but it is one of the most analyzed areas of tax returns. Be sure to maintain the appropriate records to support your business expenses, including travel and travel insurance costs. It is especially important to maintain documentation regarding the nature of the travel and how it relates to a business purpose. As always, we’re just a phone call away and we’re here to help.