When conflict disrupts business travel, what cover holds up?

Australian corporate travel insurers are facing a real‑time stress test as the Middle East conflict continues to disrupt business travel. Flight cancellations, sudden airspace closures and repatriation efforts are turning policy wording into a live issue for businesses with staff on the move.

Recent reporting highlights that different travel policy types may respond differently when conflict-related events disrupt travel. For Australian businesses, the question is clear: when plans are disrupted by conflict-related events, what cover may respond under the policy terms?  

Corporate travel policies underwritten in Australia, such as those by DUAL Australia, may respond to evacuation, cancellations and trip curtailment arising from conflict-related events, subject to the policy wording terms and conditions, government travel advice, exclusions (including regional exclusions), sub-limits and the circumstances of the claim.

Corporate travel insurers step up

Australian businesses are seeking clarity and support as travel conditions shift rapidly. While corporate travel policies may offer broader protection than some leisure travel products, cover is still subject to policy terms and conditions, exclusions and sub-limits and doesn’t extend to all travel disruptions.

DUAL’s March 2026 travel advisory notes that its corporate travel cover may respond to conflict‑related evacuation and repatriation costs were covered under the policy wording, to assist travellers to relocate to safety or return home subject to policy terms and conditions.  

Loss of deposits may be covered in certain circumstances where the insured trip has not yet commenced, provided the relevant cancellation trigger is met and subject to any exclusions or applicable sub‑limits outlined in the policy. However, the policy generally does not cover additional costs incurred solely because the traveller chooses to voluntarily rebook flights prior to departure to avoid certain countries, including those in the Middle East region Importantly, if an insured person chooses not to travel at all and seeks to claim for prepaid arrangements such as flights, tours, cruises or accommodation outside of DFAT’s designated 'do not travel' destinations, this may be considered disinclination to travel under the policy wording (depending on the circumstances). In such cases, the policy may not respond to those lost deposits.  

The experience for leisure travellers has been markedly different. Recent reporting by insuranceNEWS.com.au detailed how a leisure insurer facilitated evacuation for hundreds of customers from the Middle East region despite its leisure focused policies excluding war which may have been applicable in the circumstances. The insurer described the move as an ex‑gratia gesture and “the right thing to do,” but the situation demonstrates how varied the outcomes for retail travel insurance can be, depending on the policy wording when geopolitical events unfold.

Corporate travel cover as a safety net for businesses

Corporate travel insurance can offer broader contractual protection than some leisure policies, and recent events have highlighted these differences for certain travellers.  

Corporate travel policies are typically designed around business mobility risk and may respond when travel plans are disrupted by events outside the traveller’s control, including during times of war and civil unrest (subject to the policy wording, exclusions and circumstances of the event).

DUAL Australia’s corporate travel policies may include the following:

• Emergency evacuation and repatriation due to war or civil unrest
• Extra accommodation and transport when travellers are stranded or delayed
• Loss of deposits on pre‑paid travel arrangements
• Cancellation and curtailment for trips already underway
• Additional accommodation and transport costs when travellers cannot return home due to airspace closures or flight suspensions

For companies with staff currently in the affected region within the Middle East or with upcoming travel plans, having a policy with appropriate cover to respond is becoming increasingly important. Some leisure policies may exclude war entirely (or provide reduced cover for conflict-related event disruption), corporate policies may include cover to protect businesses from operational disruption and financial loss in volatile environments.

Evacuations highlight the limits of leisure cover

Media reporting has described a leisure insurer’s recent evacuation of customers throughout the Middle East region but the reporting also noted that many standard leisure policies may exclude war‑related events. The outcomes in conflict-related claims are dependent on the policy wording and circumstances, but it was noted that the reported evacuations were discretionary, rather than benefits payable under the policy wording.

Media reporting has also noted that cover and outcomes can vary significantly for travellers outside the immediate conflict zone. This means travellers stranded in other areas may face incur costs not covered under their policy, depending on the wording and circumstances.

What this means for businesses

The Middle East conflict may prompt Australian companies to reassess the adequacy of their travel risk frameworks. Corporate travel insurance, including policies like those underwritten by DUAL Australia, may offer a more comprehensive level of cover than some leisure policies, subject to the wording, exclusions, and claim assessment.  

What this means for brokers and insurers

Corporate insurers are navigating a nuanced responsibility:

Many corporate travel policies include a leisure travel component for directors and senior executives, which may allow them to use the policy for personal holidays (subject to eligibility and the policy wording).

Importantly, certain benefits, such as conflict‑related evacuation and cancellation benefits, may extend to approved leisure travel, which may otherwise not be available in retail leisure policies.

There's no minimum business size requirement for corporate travel. DUAL Australia can insure a range of SME businesses including sole traders right through to large national corporate clients. This breadth of eligibility means even small businesses may be able to access conflict-related benefits traditionally associated with major corporate programs.

It’s important to note that other leisure specific limitations may still apply, depending on the policy wording, such as maximum trip durations, additional loss of deposits and cancellation sub-limits and limits of liability for any one event.

This structure reinforces the value proposition of corporate travel insurance as an option for insureds while highlighting the importance of clear communication around leisure use conditions.

Accessing policies  

The divide between leisure and corporate cover has never been more visible.

Travellers relying on retail policies may face uncovered losses that are not covered, while corporate travellers may have access to structured policy benefits and assistance services, subject to the policy terms.

The current conflict is a reminder that not all travel insurance responds the same way when plans unravel. It has highlighted how corporate travel insurance may respond to certain events when disruption becomes unavoidable. For brokers, these developments are shaping conversations with clients across businesses of all sizes and understanding how corporate policies operate is becoming increasingly important.

Policy Support  

DUAL’s Corporate Travel policy is supported by DUAL Assist providing travellers with coordinated medical, travel and security case management, subject to the service terms and availability. The service is operated by Australasian Assistance and PACE First, providing insured travellers access to experienced emergency response and support teams when issues arise.

Brokers can access corporate travel quotes the WebRater.

Learn more about our Corporate Travel insurance.

Any product information discussed in this blog is subject to the terms and conditions of the policy, eligibility criteria, any additional premium for optional cover, limitations and exclusions.

Copyright © 2026 DUAL Australia Pty Ltd (ABN 16 107 553 257, AFSL 280193). All rights reserved.

The information contained in this blog is intended for licensed insurance brokers and other authorised intermediaries only. DUAL issues insurances on behalf of Certain Underwriters at Lloyd’s of London and/or Allianz Australia Insurance Limited, acting as their agent. The information is of a general nature and does not take into account the objectives, financial situation or needs of any person. It is intended for the use of professional intermediaries who are expected to consider whether it is appropriate for their clients. Before recommending or offering any insurance product, intermediaries should read the policy wording, relevant Product Disclosure Statement (PDS) and Target Market Determination (TMD) and assess whether the product is suitable for their client’s circumstances. These are available on request or via our website at DUAL Australia.