What is group holiday insurance?

Group holiday insurance is aimed at covering a group of people who are travelling to and from a destination at the same time. The definition of a group can be different, but for the purposes of this definition, we will not be including immediate families (adults and their children) as there is specific family insurance available. However, that does not mean you can't get an extended family group insured together. Other types of groups could be sports teams, school trips, religious groups travelling together, many description, all of them with the same thing in common - you can buy holiday insurance in bulk.

Like many things that you can buy in bulk, you can get a discount for it. Holiday insurers like people buying things in bulk as they get guaranteed income from it. One company does this by offering discounts of 5% for 10 or more people, 10% for 20 or more people and 20% for 50 or more people. Different companies do it differently, so you might find a flat rate of 10% off for 10 people or more, or, in other words, 1 person gets insured free out of every 10.

Some group holiday insurance has the same restrictions as any holiday insurance policy, in that winter sports has to be insured as an extra, and you have to extend your coverage to cover a ski trip. Like any type of holiday insurance you will need to look very carefully at the policy details or speak to the insurance company to make sure that you are getting the right cover for you and your group. For instance, some companies insist the whole group travels at the same time, others don't mind.

Another similarity to normal holiday insurance that group holiday insurance shares is that they both offer an option to take out annual multi-trip insurance. So if you run a group who goes away more than once a year (for instance a football team) then this is a good product for you to take. Annual policies again might include ski insurance, but you have to ask the insurer again about this.

Group holiday insurance is particularly valuable for companies who want to insure their staff. The idea is that a company would only need to buy holiday insurance once, which avoids the need to arrange cover for every individual journey your staff may take. Some companies will extend this to those staff with families who want to combine a business trip with a holiday break.

Like all insurance policies, 'cheap' doesn't mean 'lowest premiums'. Whilst group holiday insurance may save you money, it doesn't do that if you get the wrong cover and end up out of pocket.

© AskFinancially.com 2008

Travel Insurance

Insurance & Loans

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What is group holiday insurance?

© AskFinancially.com 2008

Travel Insurance

Insurance & Loans

Copyright