Many businesses are now opting to pay for travel insurance on behalf of their employees that travel. Companies who offer travel insurance can offer incentives for businesses, such as bulk-buy discounts, making it a more cost-effective means of protection.

Many businesses are also becoming aware that business travel insurance is not just for their employees who travel abroad; those that host occasions such as team-building events, training courses or product-launches can use this type of insurance to cover themselves for a range of eventualities. And those businesses that offer things like corporate hospitality outings can also insure themselves against certain happenings.

Business travel insurance can also be bought by the individual, in the event that cover is not automatically provided by their employers. This way the employee is able to conduct business on their company's behalf and not worry about lost luggage, robbery or whether their medical insurance is valid in the country they are visiting.

The policy can be bought on a trip-to-trip basis or as cover for a period of time. The former is useful for those who travel infrequently and is generally very cheap. The latter, while generally more expensive, is designed for those who travel a great deal and works out as a more economical method than buying a separate policy for each business trip.

As the competition for custom rages, many insurance companies offer a range of incentives to make their policies the most attractive. The Automobile Association (AA), for example, has now branched out into travel insurance and offers a package that provides business travel cover as part of their standard travel insurance packages. Even supermarket chains, like Asda, are starting to offer policies and thereby increasing the level of competition in the travel insurance industry. Whilst this is good news for the consumer on one level – with the prices of policies being extremely competitive – it can also make the job of choosing travel insurance a difficult one.

Many people are now turning to online comparison sites, such as Motley Fool or Money Supermarket. These sites compare the financial products of hundreds of companies in order to find the one that best suits an individual's or businesses' needs. They are free to use and can provide useful information for those who are feeling confused by the plethora of packages available.

As incentives can vary from policy to policy, so too can the list of statutes that define the cover offered. Travel insurance for business trips is definitely a worthwhile investment for a business or an individual, but it is worth taking the time to read through the policy terms to ensure that you are being covered against the eventualities that suit your needs. Business travel insurance offers peace of mind to the employee and the business itself. Look at AA Travel's website for insurance policies that cover business travel. Last minute.com offer single trip insurance when you buy one of their package city breaks that includes flights and hotels, which is another handy and all-inclusive alternative.