Venturing Abroad? Your Liability Policy May Not Cover You

There may be the occasion when you have to send executives or a team overseas for work. And depending on the destination, the risks will vary - more in some countries and less in others. 

Other factors that come into play include the number and age of your staff working overseas and what type of activities they will engage in when they are on their work assignment. 

First off, your current liability insurance may cover the basics if your staff are there on a short-term assignment. For example, if one of them injures someone while driving a car in the country, your liability policy would likely cover the damages. 

But if you are selling your service and products there of if you have a representative office there, you may need the enhanced coverage of a foreign liability insurance policy.

According to International Risk Management Institute, foreign liability insurance is:
"A specialty policy for an insured's liability for foreign operations arising out of a permanent branch office, manufacturing facility, or other operation located in another country. The commercial general liability (CGL) policy provides coverage for incidental exposures - for example, when an executive (or group of employees)... occasionally travels overseas for business trips. For permanent operations in foreign countries, a separate foreign liability policy is required."

Why purchase foreign general liability coverage
Your existing corporate liability plan may not cover you for legal expenses and lawsuits brought in overseas courts. Travel to foreign countries brings with it a number of challenges, including corrupt officials, crime, and unfamiliar laws, languages and customs. 

Organizations from the U.S. have no protection if they are taken to international court, so protect yours with a good foreign liability plan.


Who needs the coverage?
You may want to consider foreign liability insurance if you:

• Have employees or volunteers who travel outside the U.S.
• Own or lease vehicles outside the U.S./Canada.
• Export goods or services.
• Have or transport property outside the U.S. or Canada, including at foreign trade shows.
• Outsource work to subcontractors who are domiciled outside the U.S. and Canada.
• Own or operate locations, such as sales offices or call centers, outside the U.S. and Canada.
• Station American workers at foreign offices and/or employ third-country or local nationals.

What is covered in a foreign liability policy?
Such policies provide coverage for:

• Legal expenses for lawsuits brought against your organization in overseas courts.
• Criminal charges brought against your staff by foreign officials. 
• General liability brought against your company for injuries or damages resulting from the use of your product or service. 
• Emergency assistance services. 
• Automobile liability. 
• Directors & officers liability. 
• Accident and health.
• Fiduciary liability. 
• Excess liability. 
• Professional errors and omissions liability. 
• Environmental impairment liability. 
• Aircraft/watercraft liability. 
• Patent infringement.