765-395-7761
877-395-6200

International Insurance – Part 1


Firms entering into the international commerce field typically fall into one of the following categories:

1. Companies with employees who make overseas visits or who maintain temporary residency outside of the United States and Canada. All varieties of companies involved in international commerce often send sales people overseas for extended periods. Manufacturers and contractors may need to send advisors, repairpersons or engineers to overseas installations. Financial personnel may also be sent to perform audits or training.

2. Companies that have one or more contracts with foreign warehouses or distribution centers.

3. Companies with the most extensive foreign operations. Their businesses involve owning or leasing property in a foreign country, foreign subsidiaries and/or foreign-service operations.

Deciding on proper coverage is complex and care must be taken to consider each country’s laws, customs and exposures. It is critical to work with an underwriter who has experience in the country where the company has operations.

At a minimum, companies with foreign operations should consider the following coverages:

Aviation

Accident, Sickness and Health

Auto

Credit Insurance

Crime

Difference in Conditions

Difference in Limits

Directors and Officers

Employee Benefit

Employment Practices

ERISA

Kidnap and Ransom

Letters of Credit

Liability

Ocean Marine Cargo

Political Risk

Property and Time Element

 Recall

Workers Compensation

 

Just as critical as selecting the right portfolio of protection, is acquiring the correct amount of coverage. Having expert help, again, is crucial as such parties are well-versed in areas that affect decisions on policy limits, such as local labor and material costs. There are other customs which must also be considered such as related fees and expenses.

Please refer to part 2 for additional information on this topic.


COPYRIGHT: Insurance Publishing Plus, Inc. 2017

All rights reserved. Production or distribution, whether in whole or in part, in any form of media or language; and no matter what country, state or territory, is expressly forbidden without written consent of Insurance Publishing Plus, Inc.


 

International Insurance – Part 2


This part continues our discussion of protection needed by businesses with international loss exposures. Please be sure to read part 1.

Companies with employees who either travel to or temporarily live in foreign countries should consider additional insurance such as:

  • Foreign Workers Compensation
  • Accident, sickness and health insurance
  • Nonowned auto coverage that applies on a worldwide, excess basis.
  • General liability insurance that applies on a worldwide (non-U.S. or Canada) excess basis.

Furthermore, the following coverages might be critical for businesses that employ sales persons in foreign countries or who contract with foreign warehouses and/or distributors:

  • Foreign Workers Compensation: add to the U.S. workers compensation contract.
  • General liability on an excess basis.
  • Property: coverage may be necessary for owned personal property, i.e., stock, salesperson samples and exhibition property.
  • Automobile coverage on an excess basis.
  • Transit coverage.

A permanent presence in a foreign country such as the ownership or long-term lease of real estate is the third category of foreign operations. Virtually all of the coverages referenced in this article need to be considered for these firms. Work with insurance professionals who understand local conditions and laws. Positive experiences may be achieved while dealing with international markets by using professionalism, knowledge and cooperation.

Some international insurers have offices in every country where they sell insurance. Others are U.S.-based and provide coverage through agreements with affiliates which, typically, are not owned by the U.S. insurer. Some insurance agents prefer to work with an insurer that has its own offices in the foreign countries. Affiliate arrangements can be as effective as long as the U.S. underwriter and the affiliate have an open and candid channel of communication.

A recent and important concern is the effect of Britain’s citizenry voting for their country’s leaving the European Union. The act, referred to as Brexit, has many insurance ramifications. Dealing with international business coverage includes confirming that your insurer is located in areas that comply with regulations that will be changing in light of the many treaties that will have to be renegotiated and created by Brexit.

The international insurance market is growing. Many insurers have international facilities. Basic international insurance is very similar to coverages that are written in the U.S. However, again, the key is to do business with insurers that have experience and competence in handling insurance in a given foreign market.


COPYRIGHT: Insurance Publishing Plus, Inc. 2017

All rights reserved. Production or distribution, whether in whole or in part, in any form of media or language; and no matter what country, state or territory, is expressly forbidden without written consent of Insurance Publishing Plus, Inc.