Traditional business insurance plans are inadequate for companies active outside the US and Canada. Here we summarize some of the coverage issues that need to be addressed for the international business.
Property Insurance Concerns
Standard property insurance policies have severe coverage territory limitations. Most policies cover property located only in the U.S. and Canada. Cargo policies should also be reviewed for proper protection. Computer equipment taken on business trips may not be covered overseas.
Liability Coverage Problems
General liability insurance policies provide only limited protection for events that occur outside of the U.S. or Canada. Products liability claims are covered anywhere in the world as long as the product was manufactured (or sold) in the U.S. or Canada and the product was intended for use in the US. Any suit must be brought in the US. Products liability actions brought in foreign courts are not covered by the general liability insurance policy.
Workers' Compensation Issues
Workers' compensation insurance policies provide coverage for citizens of the US and Canada that are temporarily outside of the country. Problems exist with the definition of the word "temporarily". Coverage is not provided for repatriation of employees who die while on foreign assignment or who require special transportation for injuries or illness that strikes while overseas. Endemic disease is not covered.
Auto Insurance Issues
Commercial automobile insurance policies provide liability protection in the United States, its territories and possessions, Puerto Rico, and Canada. Auto accidents that take place in any other part of the world are not covered.
The Solution
Any business who participates in trade or travel outside of the United States or Canada needs to analyze the unique exposures presented. A detailed review of the coverage provided by the current insurance policies is necessary to determine what insurance action should be taken. Special "International Insurance Plans" are available from many insurance companies at premiums that are quite reasonable. These policies can be tailored to meet the specific needs of the organization.
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