Travel policy: guaranteeing your business travel

Do your employees need to travel on a regular basis? As is the case in numerous other companies, you are required to comply with a certain number of requirements. This is what is referred to as a “duty of care”. Means of transport, accommodation, business expenses, professional meals… a good company travel policy is a policy that covers all of these things.
But it is also so much more than just that! Company managers don't just need to factor in the duty of care that they have in respect of their employees. They also need to be able to manage all the associated risks. After all, it's the safety of their employees that is in the balance! Beyond setting out conditions for transport and accommodation, a travel policy also enables a company to formalise all the business travel procedures that it decides to apply.

A travel policy enables a company to set out the procedures to follow when it comes to scheduling and managing business travel. As companies expand their business internationally, they are increasingly required to send their employees abroad. So business travel is part and parcel of today's world, so much so that it is something that tax authorities and immigration services the world over scrutinise very closely. And it is for that reason that more and more companies are seeking to firm up the travel policies that they have in place. Although a number of companies still claim that they have no procedures in place when it comes to business travel, most of them are aware of the importance of having one. When a company decides to introduce a travel policy, it enables them to formalise questions to do with business travel, as well as optimising the way in which travel expenses and any problems that might arise can be handled.

In a company, the finance director or travel manager is usually in charge of developing and then implementing a travel policy template. In smaller companies, the administrative manager can sometimes oversee management of business travel arrangements. The travel policy covers issues such as booking procedures and caps on authorised expenses, as well as the list of preferred service providers. That way, the company can let its employees know what procedures they need to follow and the budgets they must keep within when they are on business trips – particularly hotel or transport expenses (plane, train, car). A travel policy should also cover a number of exceptions and special rules when a bigger budget is needed for certain trips. This makes it easier to internally validate and approve expenses for most trips.

The travel policy functions as a roadmap for company employees who are on the move. It enables them to manage their travel expenses with complete confidence. The idea is to clearly set authorised spending caps, as well as establishing procedures for getting reimbursed so that your employees can travel with complete peace of mind. Indeed, a properly set out travel policy can provide employees with reassurance.

And a comprehensive and effective travel policy should also contain the following elements: 

● a debrief (or report) process for the trip on the employee’s return;
● the preferred travel insurance company;
● the body in charge of the duty of care or the procedures in place for this purpose.

At the same time, defining a sound strategy for managing travel risks will optimise the way in which business travel is managed across the company.

A sound travel policy should include a detailed plan for managing business travel risks. Defining such a strategy will enable companies to let employees know about the measures in place for ensuring their safety during business trips. To develop a plan for managing employees’ travel risks, dedicated teams can analyse the company’s risk data and history. Has a given employee already been involved in a car crash? Are flights often late or cancelled? What type of accommodation has proven disappointing or too expensive? The teams tasked with defining the travel risk management policy can also talk to company employees beforehand to get information about their travel habits. That way, they can provide feedback about problems they may have encountered during their business trips.

The travel management policy often covers major identified risks, such as terrorism. But it also needs to cover risks that are considered less serious. Indeed, the risk of an employee tripping and breaking their ankle, or the risks to which they expose themselves when they drive when they are tired are significantly higher than the likelihood of a terrorist attack or plane crash. That is why the travel risk management plan must absolutely factor in less serious, but more frequent risks – particularly the risks that come into play when changing hotel or when organising a transfer and a trip in complete safety.

How can a link be established between risk management and travel insurance? A company's travel policy should focus on three aims: provide employees with simple procedures to follow when it comes to business travel, make travel expenses more transparent and improve risk management and the management of emergencies so as to optimise employee safety. These rules apply to business travel both within France and abroad. All employees should have the same level of protection when they are travelling – whether it be for an hour-long car journey or a plane trip to the other side of the Atlantic. Since there is no clear case law for knowing how to accurately assess risks, insurance companies can help employers put in place business travel risk management plans that are compatible with their duty of care.

But before authorising employees to travel, it is important for a company to understand that its liability can be invoked. However, if there is a risk, then having comprehensive travel insurance can make all the difference! That is why systems for managing travel risks put in place by the company supplement the travel insurance policies that it has taken out.

At AXA Partners, we are aware of the enormous pressure that companies are under so that their employees can travel with complete peace of mind. That's why AXA Partners is committed to providing them with insurance policies and tools that are perfectly suited to the challenges of today's world. These include Travel Eye, a service connected directly to companies Travel Management Company (TMC) which enables companies to simplify their travel safety procedures. Travel Eye was also developed to support employees during their trips and enables them to effectively reduce risks associated with business travel, offering them a complete range of healthcare and business travel services. It can be easily incorporated into a company's travel policy – it simplifies scheduling, booking, risk mitigation, travelling staff accountability and travel insurance.