U.S.-based businesses face unique exposures when employees travel worldwide on their behalf. 

With a network of foreign liability insurers that are rated among the highest in the world, VANTREO has the ability to keep your business covered at any time or place. We'll build a coverage plan specifically for your needs.

Feel more secure with smarter foreign liability coverage.

What Is Foreign Liability Insurance?

Travel outside of the United States can expose your business and employees to unique risks. Foreign laws and customs, local regulations, political unrest, and corruption are a few examples of challenges that could lead to litigation, asset seizure, and personal harm. Your existing commercial policy probably does not cover monetary damages or legal expenses in foreign courts and may not pay for the medical or funeral costs for accidental death or injury in an international incident.

U.S.-based organizations may need a foreign liability insurance package if their overseas business activities include:

  • International travel
  • Distribution or manufacturing operations
  • Trade shows, demonstrations, or meetings
  • Foreign vehicle use
  • Travel to high-risk areas for kidnapping, extortion, or likelihood of emergency evacuation requests



What Does a Foreign Package Policy Cover?

The standard general liability policy provides coverage for incidental exposures abroad, such as an executive who lives and works in the United States and occasionally travels overseas. International or foreign liability insurance protects businesses and their people for operations arising out of a permanent branch office, manufacturing facility, construction project, or other function located in another country. Your business's international risk exposure will determine the types of coverage included in your foreign package policy.

Foreign Commercial General Liability

Any business-related incidents that occur outside of the United States, Canada, or Puerto Rico generally need coverage from a foreign commercial general liability policy. This includes third-party claims of property damage or bodily injury caused by your company, managers, or employees. Commercial general liability in foreign countries also can cover your expenses in lawsuits that originate in foreign jurisdictions.

Foreign Commercial Property

International property coverage insures your business's real and personal property. This can be either property located or held in outside countries or property carried during business travel, such as laptops, files, or product samples. Property coverage can be extended to include loss of income if the damage leads to a slowdown or cessation of business operations. Additional cyber coverage can protect you from any sudden and accidental damage or loss of electronic data.

Foreign Voluntary Workers' Compensation

Your standard workers' compensation policy probably will not cover any employee's injury or illness sustained while performing international work duties. Therefore, you should consider foreign voluntary workers' compensation coverage if your personnel travel to or work in foreign countries. In addition, an FVWC policy can give benefits to locally hired employees in countries with workers' comp programs that do not measure up to your company's standards. Since the foreign governments under which you operate will probably require you to purchase the local equivalent of workers' compensation, you can elect a difference-in-conditions/difference-in-limits option.

Employers' Liability

International employers' liability coverage is for any claims of negligence brought against your company by an employee who suffers an accident or sustains an illness, injury, or death while traveling or working overseas. Many countries require businesses that operate within their borders to carry employers' liability insurance.

Foreign Business Auto Liability

Foreign countries often mandate automobile coverage, but the limits are often much lower than the U.S. equivalent. This is why foreign business auto liability insurance is a must if your employees regularly travel and rent vehicles internationally. This policy will also cover your company's foreign fleets, drivers who use their personal vehicles, and any employees who use a non-company car, van, or truck to conduct business. 

Other Types of International Coverage:

As you build your international business, the nature of your industry may require specific kinds of coverage:

  • Foreign Supplier Liability: While these policies usually cover product liability claims against U.S.-based companies that sell goods manufactured or sourced in foreign countries, coverage can be expanded to include claims made against a U.S.-owned company manufacturing or selling overseas. 
  • Business Travel Accident: International business travel coverage can handle claims due to accidental death, injury or dismemberment during the course of foreign travel. This can be especially beneficial if you do not have overseas operations but often send personnel abroad. 
  • Kidnap, Ransom, and Extortion: If your company operates in countries that have high occurrences of kidnapping or extortion demands, you should strongly consider a kidnap, ransom, and extortion insurance policy.
  • Political Risk: Unpredictable foreign political situations can lead to economic damage due to embargoes, tariffs, or the nationalization or seizure of your company's overseas assets.


Is Foreign General Liability Insurance Required?

Often the insurance required in other countries mandates that the insurance be written by carriers located in that particular country. Most Foreign liability insurers can address this need. For example, most countries have insurance requirements related to workers' compensation and automobile insurance that must be addressed.

What Doesn't a Foreign Liability Policy Cover?

All insurance policies have coverage exclusions and limitations. Here are a few things that foreign liability insurance policies may not cover:

  • Countries other than those specifically scheduled for coverage
  • Coverage that a country mandates be purchased through their own government
  • Any exposure that is not disclosed on the application for the insurance


Why Choose VANTREO for Foreign General Liability Insurance?

In this world of instant access to the global marketplace, VANTREO has the ability to move quickly as your business needs expand throughout the world. We have global access to foreign liability insurers that are rated among the highest in the world for their financial strength and ability to keep their commitments to their insureds.

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