Does Your Business Insurance Cover You Abroad?
Yesterday, one of our local commercial clients called to ask if his commercial insurance would cover him and his employees abroad. This is an excellent question, and one which we felt certainly should be addressed to a wider audience. Most of the time, clients just assume that their insurance will protect them everywhere in the world and why not? The why not is because legal systems elsewhere in the world don’t necessarily imitate the laws in our country. In addition, not all countries are as litigious as the United States and, therefore, their insurance knowledge and requirements may differ widely from ours. The short response is that if a lawsuit is brought against your company here in the U.S. your insurance will most likely respond. However, if any lawsuit against your company is brought outside the U.S., Canada and the Virgin Islands, (and any other territories specifically listed in your policy) there may be a need for Foreign Liability coverage. Such a policy would afford insurance coverage and protection for risks associated with doing business outside the U.S. Such questions of responsibility concerning the injury, death or illness of employees working, living or traveling outside the U.S. are contemplated by a Foreign Liability policy.The need for emergency evacuation, coverage for products sold overseas, auto coverage for those driving in other countries are all addressed in this policy.
Of course, given our global economy, every company should examine their need for a Foreign Liability. If you are unsure as to whether or not your insurance program properly protects you in other countries, we strongly suggest that you discuss this with your agent without delay.
