What Is World Insurance?
Let me explain world insurance directly to you: it's a commercial liability policy that gives businesses global coverage, protecting them if they're sued anywhere in the world. You should know that while standard commercial liability policies usually limit coverage geographically, world insurance extends it without those restrictions. I see this type of insurance often obtained by multinational firms, corporations with a global footprint, or even domestic companies that deal with international partners or associates.
Key Takeaways
Here's what you need to grasp: world insurance offers commercial liability coverage if you're sued anywhere in the world, though it comes with some restrictions. If your company has global operations or contracts with international partners, you should consider purchasing this coverage. You'll find common types include foreign commercial general liability, foreign business auto, foreign voluntary workers’ compensation, and foreign travel accident and sickness insurance.
Understanding World Insurance
You have to pay an additional premium for world insurance, and I recommend viewing it alongside property and workers' compensation insurance as essential for any business. This coverage protects your business assets if you're sued for alleged bodily injury or property damages. Your insurer might also handle damages and legal expenses for claims involving product liability, contractual liability, personal injury, advertising injury, and other risks outlined in the policy.
As someone explaining this to you, I stress that organizations must understand their insurance needs for international operations. Protecting corporate assets is critical, and most U.S.-placed policies offer limited or no coverage for losses abroad. There are specialized world insurance policies available that provide the global protection you need for conducting international business.
Types of World Insurance
Depending on how much foreign business you're conducting, you should consider several types of insurance. Many of these foreign liability coverages can be packaged together and adjusted as your business needs change.
Take foreign commercial general liability: it's similar to domestic coverage but applies to foreign occurrences, including U.S. incidents when suits are brought outside the U.S. or Canada. You need this if you're a manufacturer or distributor selling products abroad and facing lawsuits in foreign jurisdictions, since a U.S.-based policy only covers suits filed in the U.S. or Canada.
Then there's foreign business auto coverage, which companies buy to protect against physical damage and liability for hired and non-owned vehicles operated overseas. You typically need this for limits above the minimum or statutory requirements from rental companies in foreign countries.
Foreign voluntary workers’ compensation or employers liability extends benefits for U.S. employees traveling overseas or assigned to work outside the U.S. and Canada. This can include medical assistance programs and repatriation expenses.
Foreign commercial property and business income insurance protects at unscheduled locations while in transit, covering items like laptop computers, sales samples, and personal property at overseas trade shows. If you have owned or leased facilities abroad, you might require a more extensive policy.
Foreign crime coverage protects against losses from dishonest acts by employees overseas, such as forgery, theft, or robbery.
Finally, foreign travel accident and sickness insurance provides additional protection for companies or individuals in case of emergencies while traveling overseas.
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