Globalization: Insured

    A-Z Technology, Inc. is very conscious of its domestic risk exposure, and the CEO and CFO have made sure to fill every gap possible with an insurance product. They obviously have their property insurance, general liability, workers compensation, car insurance, professional liability and they even have internet liability and network security liability. They're starting to grow, but the policies keep renewing, and the premiums keep growing so they feel safe. However, now A-Z Technology has starting to grow outside of the United States.

    It was only a little bit at first. A trip to Brazil to make the sales pitch for 4 days. Then they got the account in Columbia which had their two employees over there for 3 weeks. And now they have the call center in Chile that is saving them a lot of money. The principals didn't think much about it, until the one day that they got the call.

The call center manager was in Chile and decided to rent a vehicle. He was tired of relying on the taxis and public transportation, and he knew his way around by now. Well, he got into an accident. He's a little banged up, the other driver was hurt more severely, and your employee was at-fault. What do you do now? Can you call up your car insurance to cover the accident in a rented vehicle in another country?

This is where you need to make sure your global exposures are properly insured by your global insurance. Just think about all of the obstacles of driving in another country: Jet lag, Unfamiliar roads and signs, different speed limits, rules, and regulations, and an unfamiliar vehicle.

This type of coverage is called Hired and Non-owned Automobile Liability Insurance. On top of this there are other coverages that companies need to take into consideration. For one, you need property insurance. In the example above the company actually had a physical location which could be insured for building coverage, and in addition they have equipment and other business property which can be insured as well for theft, fire, vandalism, windstorms, lightning, ect. You probably also have property-in-transit which you would want to insure including samples and equipment. You also have general liability concerns. Just like someone can fall in your office and sue you in the United States, the same can apply overseas.

In the example above your employee was hurt. You need to think about how that employee will be insured for in the recovery process. Foreign Voluntary Workers Compensation covers U.S. employees while they are working overseas. In addition to the normal workers comp coverage, foreign voluntary workers comp also pays repatriation and evacuation expenses to get your injured employee safely back into the United States. Foreign Voluntary Workers Compensation is not a regulatory benefit like Statutory Workers Comp, which is regulated by each State. However, Foreign Voluntary Workers Compensation is a promise to pay the equivalent of regulatory benefits, should the loss fall outside the state/country statutes or regulations.

Lastly, A-Z Technology, Inc. should consider having Kidnap and Ransom Insurance and Accidental Death & Dismemberment Insurance for their employee benefits. Nobody wants to think about it, and no one thinks it can happen to them, but it does happen, and it happens to someone. Kidnap and Ransom Coverage helps in the process of trying to negotiate with a person's captor in the event this would happen. The insurance can also pay requested Ransom amounts, and pay for any events that do occur.

For more information about global insurance please contact me, Andrew Cohn at (786) 382-6833 or email acohn@alcrisk.com. For more information about Global Insurance coverages and other insurance coverages visit our the ALC Risk Solutions website at www.alcrisk.com.