5 Components to the Foreign Package Policy
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Are you considering selling your product overseas? Do any of your employees travel overseas? Do you have manufacturing or recycling operations outside of the United States? If you answered “yes” to any of these questions, a foreign package policy is coverage you should be discussing with your broker. Following are several of the components that can make up a foreign package policy with a brief description of each:
- Foreign Voluntary Workers’ Compensation or Employers Liability: Extends workers’ compensation benefits to employees when traveling outside of the U.S.. This portion of the policy can also include coverage for medical assistance programs and expenses for repatriation (the transportation of a sick or injured employee back to the U.S.).
- Foreign Commercial Property, Including Business Income: Typically provides incidental coverage for property that you might take with you on an overseas trip such as laptop computers, trade show property or samples of your product. If you have a manufacturing location in another country, a more extensive, and sometimes separate, policy should be purchased in conjunction with the foreign package policy. It’ll provide coverage on an “admitted” basis (i.e. the insurance company has operations and issues/services policies within the foreign country of your operations in accordance with local laws/regulations).
- Foreign Commercial General Liability: Provides liability coverage for occurrences and lawsuits brought against a manufacturer outside of the U.S. and Canada (i.e. foreign jurisdictions). It’s important to note that a U.S.-based liability policy will typically only provide coverage for lawsuits brought in the U.S. or Canada.
- Foreign Business Auto: Can provide both liability and physical damage coverage for hired and non-owned vehicles that are operated in other countries. Please note that this coverage is meant to be over and above the local insurance that you must purchase from the rental company of a foreign country.
- Kidnap, Ransom and Extortion: Depending on where your foreign travels might take your company’s top executives or key employees, this coverage should be considered in the event that one of these important individuals, or their family members, is kidnapped.
In addition to the above mentioned key components, a foreign package policy can also include Travel Accident & Sickness coverage, Political Risk coverage or Foreign Travel Assist coverage. It’s also important to know that there are countries that can be excluded from this coverage. Finally, always be sure to discuss any type of foreign exposure that you have, or are contemplating, with your Assurance agent to ensure that you are properly mitigating any risk that these foreign operations can present to you and your manufacturing company.
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