Just released: How to raise venture capital in 2023

Download

How do companies protect traveling employees?

Matt McKenna Scale Underwriting
Matt McKenna

Underwriting Manager


Technology may be breaking down geographic barriers but that doesn’t mean sending your employees overseas is getting any safer. Businesses whose employees travel internationally are familiar with these risks. But how do they protect traveling employees?

Every company is different but some risks are common across the board. We’ll show you why they matter and what insurance products exist to deal with them:

 

What happens if my employee gets sick or injured?

Think about an employee getting appendicitis while they’re in Singapore. Does your company health insurance plan extend coverage to overseas medevaambulance rides, emergency room visits and surgeries?

Travel and accident coverage will pay medical expenses when the employee’s health insurance can’t. The coverage isn’t as broad as a health insurance plan but it provides a great safety net for worst case scenarios.

On top of that, employer’s liability coverage will provide the company with legal defense costs if the employee files a lawsuit because of the illness or injury.

 

What happens if my employee gets into a car accident?

Auto insurance policies are just as necessary overseas as they are here. Making sure that your company and your employees are properly insured is just common sense.

Forgetting for a moment the injuries that an employee could suffer, there’s the potential for serious bodily injury and property damage to those around the employee. Him or her, as well as the company, could be held liable.

Foreign auto coverage will provide protection on top of the employee’s auto insurance from legal liabilities when an employee gets into an accident while overseas on company business.

Hired and non owned auto insurance policies are just as necessary overseas as they are here. Making sure that your company and your employees are properly insured is just common sense.

 

What happens if my employee causes someone else bodily injury or property damage?

Say your salesperson is visiting a client in Madrid when he accidentally spills a carafe of coffee, burning bystanders and damaging computer equipment. Or he bumps into a cyclist while jaywalking on the way into the office, injuring the rider and the bike.

These things happen all the time but they don’t have to catch you off-guard. Commercial general liability insurance can be extended overseas to protect travelling employees — not to mention the company — from bodily injury and property damage suits that are filed outside the US.

 

What happens if my employee’s property is stolen?

Tourists and business travelers can make for easy prey. It’s not uncommon for property crimes to be committed against employees while they’re out of the country.

One of the most frequent claims we see are stolen laptops — depending on the laptop, this can be an expense well into the thousands of dollars.

Commercial property insurance on an international scale can protect you here. It works the same way as it does domestically: if there is a covered loss to your property, the carrier will reimburse you the replacement cost of the property.

 

What happens if my employee is kidnapped?

This may seem far-fetched, but it happens. It’s a cottage industry in a couple countries. Overseas employees can be captured or hijacked and held for ransom. The kidnappers count on victims’ employers having deep pockets, wanting to protect their team, and being conscious of the potential for a public relations crisis.

Kidnap and ransom insurance pays the price of security consultants, ransom payments, and legal defense costs if the employee holds the company liable once the dust settles.

Carriers won’t offer this coverage for every country. Those with a high frequency of kidnappings will often be excluded from coverage so it’s important to ask questions and know your policy.

 

So how do I protect traveling employees?

All of these coverages can be purchased independently but, more often than not, companies will buy an international package policy. This will bundle the coverages together, helping to prevent coverage gaps and claim headaches.

Carriers are making it easier and easier to obtain this coverage. One major US carrier, AIG, even offers automatic quoting to any business that fits within certain parameters — that means your coverage could be in place in a matter of hours if needed, not days or weeks (more on this below).

The bonus is that these policies are designed to cover much more than just the employee’s trip. Policies can offer worldwide products liability or ocean cargo coverages, as well as voluntary workers compensation for local employees.

 

Want to know more?

You can contact us at info@foundershield.com or create an account here in order to get a quote for an international package policy. Make sure to mention AIG’s WorldRisk FastTrack coverage if you’re interested in learning more about this new product.

Want to read more?  Check out our other blog posts on general liability, property and others!

 

Related Articles

fintech legal risks
February 29 • Risk Management

7 Legal Issues Every Fintech Should Avoid (and How to Diffuse Them!)

With the emergence of new and disruptive technologies, it’s no surprise that fintech legal risks abound for this innovative industry. Let’s break down these threats and provide solutions that will keep pace with the market.

leverage business insurance
February 27 • Risk Management

How to Leverage Your Business Insurance — 5 Tips

When was the last time you considered how to leverage your business insurance? It’s more than a safety net. In fact, this approach can give you a unique edge. Here’s how.

saas cyberattacks
December 11 • Risk Management

How SaaS Companies Can Avoid New Cyberattacks in 2024

Avoiding SaaS cyberattacks means teaming innovative technologies (like AI) with traditional risk management (like education) to stay ahead of the curve. We can show you how.

Legal Risks for SaaS Companies
December 5 • Risk Management

Top 5 Legal Risks for SaaS Companies in 2024

SaaS companies are on the forefront of innovation but face legal risks that leaders must understand. Here are SaaS risks to watch in 2024.

What Is a BOR Letter
July 27 • Risk Management

What Is a BOR Letter or Broker of Record Letter?

What is a BOR letter? Can it help you manage your specialized insurance solutions? We have the answers — and they may surprise you!

Risk Management for Regulation Technology
July 20 • Risk Management

RegTech Insurance: Risk Management for Regulation Technology

Regtech insurance is specifically designed for regulation technology companies — but what risks do regtech companies face? Let’s discuss some prominent challenges and solutions for this sector.