Over Seas Endevors

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 or products abroad 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 an 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, in- cluding 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 cen- ters, outside the U.S. and Canada.

• Station American workers at foreign offices and/or employ third-country or local nationals.