Amex To Cut Back Card Insurance

Amex To Cut Back Card Insurance

American Express in early February will notify corporate card holders that it has restricted travel accident insurance coverage, but raised the benefit to $350,000 from $200,000. Escalating insurance costs have forced American Express to reduce coverage from "door-to-door" to "common carrier," meaning cardholders are covered in the event of air, land or water vehicle accidents but not, for example, while walking to a meeting. Generally, common carrier insurance is standard with other cards. According to a spokeswoman, American Express reduced its coverage instead of passing on "quadrupled" costs to the customer. "We reviewed a lot of options but our commitment was to maintain substantial business travel accident insurance as a core component," said the spokeswoman. Other corporate card vendors have made no changes, although some said their insurance contracts have not come up for renewal since September. The Amex spokeswoman said the company's policy was up for renewal.