The further and more frequently you travel, the more you probably need travel insurance.

At least, you need to assess your itinerary’s vulnerability to all of Murphy’s travel laws: Will clients or family prevail upon you to stay longer than your airline reservations allow? If you have a medical emergency during your trip, will your health insurance cover extended lodging and added travel fees? Are you protected against total loss of your luggage? What about the awkwardness of the airline’s sending your delicates to Detroit when you are headed for Cleveland? The more important your trip, the more you should weigh the pros and cons of travel insurance. Even more importantly, the more frequently you travel for your growing business, the more seriously you should consider application for a credit card that offers comprehensive travel protection.

A little expense may save a lot of headache

Travel insurance typically costs about 8% of your total airfare and hotel costs, and it protects you against all the standard complications of extended travel—rebooking fees, cancellation fees, lost and misplaced luggage, healthcare and hospitalization, and most other circumstances that disrupt your itinerary. In general, a standard travel insurance policy costs less than one cancellation fee.

Caution about what insurance does not cover

Travel insurance brokers paint grim, dreary pictures of airlines’ and hotels’ cancellation policies and fees; and it is true that some air carriers and hoteliers are frighteningly unforgiving of life’s tragedies. Before you buy travel insurance, though, you may take a few extra minutes to find out what your airline and hotel will cancel or adjust without extra fees. If you discover the answer is “not much,” then a nominal investment in travel insurance makes a great deal of sense. Check the fine print, though, because travel insurance hardly ever covers changes or cancellations due to pet bereavement or divorce. Similarly, if you choose to cruise the Caribbean during hurricane season, you may have to weather a storm without insurance coverage.

If you are booking international travel, you definitely should check with your health insurance carrier, inquiring what they will cover and how they will manage hospital admission and payment. Many health plans stop at international boundaries, making travel insurance a must. In many other cases, travel insurance speeds and simplifies the medical claims process. For international travel, a check with the State Department also saves in-country difficulties: Travel policies typically cover disruptions and damages from acts of terrorism, but they do not cover similar losses from insurrection, criminal activity, or civil war. If Libya rebels or Mexican drug cartels appropriate your blow-dryer and iPad, you are not covered.

Check your credit card coverage

If you travel frequently, secure a travel-friendly credit card that comes fully equipped with all the benefits of travel insurance. The best cards offer more comprehensive travel coverage with higher pay-off limits and fewer restrictions than most short-term travel insurance policies. Whereas most travel insurance excludes “extreme sports” injuries from its medical coverage, American Express generously includes skiing and snowboarding in its coverage; and it provides extended lodging if you are released from the hospital but not healthy enough to travel. Moreover, American Express travel coverage extends to cover all your authorized cardholders whether they are traveling with you or not. Although these precious-metal-colored cards charge annual fees for their privileges and prestige, the fees typically cost less than insurance for one coast-to-coast family trip. Other high-end credit cards offer both rewards and extended insurance coverage for frequent travelers. As always, comparison shopping pays-off, and “all of the above” is often the best answer to “which credit cards should I carry?”

The importance of travel insurance ultimately comes down to the type of trip you’re planning, how likely you are to make changes to your plans, and how serious the damage could be if something goes wrong. These are questions you’ll want to carefully ponder before your next trip.

Photo credit: Waiting for transit by A. Kuzminski/flickr

Author’s Bio

Richard G. Hamilton is an business planner and content contributor for online insurance sites.  The car insurance rates at Kanetix also show comparisons and information for the U.S. and Canada.