When should my company purchase Foreign Liability Insurance? This question is asked more each year as companies expand their operations into foreign countries. The majority of insurance policies issued in the United States provide little, if any, protection for losses occurring abroad, creating the need for coverage for these uninsured exposures.  Foreign Liability Insurance is the first line of defense against costly litigation arising from actions arising outside the United States.

Following are some situations where Foreign Liability Coverage should be considered:

• When your company expands operations to manufacture and distribute its products outside of the United States
• When your employees travel overseas and rent automobiles
• When traveling overseas your employees need emergency travel services
• When there is Kidnap/Ransom/Extortion potential for employees on out of country business trips
• When renting office space overseas for product demonstrations, or attending tradeshows and exhibitions
• When temporarily working in a foreign country, your employee requires immediate medical attention, or requests emergency evacuation

Many insurance carriers offer “package” policies that include a broad array of coverage options for the company with small to moderate foreign liability exposures. The most common coverage sections chosen by employers are:

• Foreign Commercial General Liability – Coverage is similar to domestic liability coverage with the primary difference that suits must be brought outside the United States or Canada, whereas domestic policies only covers lawsuits that are filed in the U.S. or Canada
• Foreign Business Auto – Provides coverage for hired and non-owned liability as well as physical damage protection for vehicles operated overseas.  Coverage is typically excess over the local minimum limits required to be purchased  from the rental company in the foreign country
• Foreign Workers Compensation/ Employers Liability – Extends coverage for employees working overseas. Coverage often includes repatriation expenses, worldwide employer liability protection, and 24-hr endemic disease protection
• Foreign Travel Assist – Provides emergency travel assistance services
• Accident, Sickness, Health – 24-hr coverage for employee and family members when traveling abroad
• Kidnap, Ransom & Extortion

The above list is not exhaustive, as there are other coverage options available for your international exposures. Premiums start at approximately $2,500, and increase depending upon coverage options chosen and the level of exposure. We are available to advise you not only on Foreign Liability coverage but on any of your commercial insurance needs. Please do not hesitate to contact us.