Doing business overseas? Don't count on your domestic policy
for coverage. "There are serious gaps in domestic programs
that don't cover a myriad of exposures overseas," says
Bill Skapof, senior vice president at AIG WorldSource in New York
City. If you're operating abroad, you need to protect your
people, property and income.
For example, your domestic general and product liability policy
may say it offers worldwide coverage, but in most cases, that's
only if the suit is brought in the United States (even though the
claim may have occurred elsewhere). "More and more, claims are
not being brought back to the U.S.," says Skapof. If
you're at risk of being sued in another country, you need
coverage that will pick up your defense costs and cover your
liability in that country.
Skapof says when workers are sent overseas, they face a range of
risks that may not be covered under your standard policy. Be sure
they'll be protected if they become ill or injured either on or
off the job with insurance that pays upfront rather than simply
reimbursing costs later. The policy should also cover the cost of
any special transportation required to bring an ill employee
home.
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Service is a critical element of international insurance, says
Skapof. Choose a company that has representation in the countries
where you're operating so you have someone local to call if you
need help.
Rates vary depending on your type of business and the specific
coverage you need. Skapof says a solid international policy that
includes general and product liability, workers' compensation,
accident and health, kidnap and ransom, foreign fidelity,
automobile, political risk and local assistance starts at about
$2,500 a year.
Jacquelyn Lynn is a freelance business writer in Orlando,
Florida.
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Originally published in the August 2002 issue of Entrepreneur Magazine