Commercial Foreign vs. Business Travel Accident Insurance: Differences and Why You May Need Both

December 19, 2025

By Daniel Brettler

Commercial Foreign Insurance

The Basics

Commercial foreign insurance policies (also known as foreign packages or multinational policies) typically extend standard business coverages — such as general liability, auto, employers‘ responsibility, property and other incidental coverages — outside the U.S., Canada and their territories. Coverage may be provided via admitted or non-admitted policies or both, although many countries mandate admitted policies written locally in their own language and currency. Regulations aside, employees working abroad are generally accustomed to policies that offer broad travel accident benefits provided by foreign-domiciled insurers on admitted policy forms.

Occupational-Related Structure

It’s important to understand that foreign commercial insurance policies typically cover occupational-related accidents and illnesses only. For example:

• If an employee traveling from France to Germany for a business meeting is injured in a car accident en route, liability and first party injury claims should be covered.
• However, if the employee is injured while visiting a friend’s home in Germany before the meeting, that loss is unlikely to be covered.
• Similarly, contracting an illness like the flu during travel may not be covered.

These examples illustrate the complexities and potential coverage gaps of foreign commercial insurance, which are particularly concerning in light of how employers’ responsibility and state-sponsored health programs operate outside the U.S. For example, U.S.-based employee benefits programs often exclude in-network benefits abroad, putting employees at financial risk and left to navigate the unfamiliar healthcare systems of foreign countries.

A multi-pronged approach that also includes business travel accident insurance can help close foreign commercial insurance coverage gaps and extend coverage even further.

Business Travel Accident Insurance

The Basics

Business travel accident (BTA) policies serve as primary insurance in certain situations and supplemental insurance in others. Key benefits include:

• Out-of-Country Medical Coverage: BTA acts as primary insurance when no other health insurance is available. For instance, if an employee is injured during personal time abroad and needs hospital care, BTA coverage may be the main source of protection.
• Immediate Access to Care: BTA policies typically provide the cash security required for employees to access treatment facilities outside the U.S. and assist the employee directly with event logistics.
• Supplemental Benefits: For occupational events, BTA provides additional lump sum benefits beyond those available from foreign commercial insurance or local state health programs. This includes high-limit benefits for loss of life, limb, sight, speech or hearing. BTAs can also supplement low-limit death benefits that may be available under workers’ compensation.
• Family Member Coverage: BTA can extend coverage to family members traveling with the employee, even for personal excursions, on a 24-hour basis.
• Additional Extensions: BTA coverage can also be expanded to include medical evacuation, repatriation, security evacuation, family reunion/trip cancellation expenses and more.

Integration With Travel Assistance Services

For large employee travel exposures some insurers partner with worldwide travel assistance providers. If a company has BTA and foreign commercial insurance, the insurer can recognize that single travel assistance provider to coordinate employee support during travel-related incidents. The provider manages employee needs and determines whether the claim falls under the BTA or foreign commercial insurance policy, so employees do not have to navigate the claim and coverage coordination process.

Special Considerations for Clinical Trials Travel

Organizations conducting human clinical trials, particularly those enrolling patients who travel with caregivers or family, can negotiate BTA policies to include coverage for participants and guests traveling for treatment. This is especially relevant for rare disease, cell and gene therapy and foreign clinical trials patients/participants traveling outside their home country.

Bottom Line

While commercial foreign insurance is essential for occupational exposures abroad, it does not fully address all risks associated with business travel —especially those occurring outside the scope of work. Business travel accident insurance fills these gaps, providing comprehensive protection for employees and their families — and offering valuable coverage extensions and support services. That’s why organizations with significant international travel should consider leveraging both types of coverage to ensure optimal risk management and employee well-being.

In addition to enhancing employee protection, a strategy that includes integrated business travel accident and commercial foreign insurance serves as a valuable and appreciated workforce benefit.

To learn more about how these coverages can work together for your organization, please contact the Conner Strong & Buckelew team today.