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What Is Foreign Liability Insurance?

When you own a business, you have different insurance needs that depend on the type of business you do and on where you conduct your business. If you do business in countries outside of the United States, you most likely need foreign liability insurance coverage in case of any accidents that might occur in a foreign country in which you conduct business. Most standard U.S. business liability policies do not cover accidents that take place in another country. Our agents at Elite Insurance Solutions can help you decide if this type of insurance is necessary for your business. We would like to tell you more about foreign liability insurance by sharing with you some information from About Money.

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Why would I need foreign liability insurance?

You should consider purchasing foreign liability coverage if your business exports products to foreign countries and if your business includes a store, warehouse, or other physical location in a foreign country. Frequent business travel to foreign countries would be another reason to hold a foreign liability insurance policy.

What exactly is covered in a standard U.S. business liability policy?

This policy typically covers property damage and bodily injury caused by something that happens in the coverage territory, which is generally the United States, Puerto Rico, and Canada. Other situations that are covered under a standard U.S. liability policy include injury or damage that arises from temporary business travel in a foreign country by you or another insured and from products that you distribute outside of the United States if they are made or sold by you in the U.S.A., Puerto Rico, or Canada.

What are the different types of foreign liability insurance?

Foreign liability insurance includes two different types of policies: exporters package and controlled master program.

EXPORTERS PACKAGE

Designed for companies whose foreign business dealings are made up of U.S. products exported outside of the United States, the exporters package policy does not include physical locations, such as a store or a warehouse, in foreign countries. Covering product liability lawsuits for bodily injury or property damage that happens outside of the U.S., this type of policy can also cover incidental foreign travel and can be bundled with auto liability and personal property coverage.

CONTROLLED MASTER PROGRAM

If your business includes stores, warehouses, or other physical locations in a foreign country, you will need a controlled master program (CMP). This type of policy includes a master policy, which is written by an American insurer on a U.S. policy form, and one or more local policies, which are issued by an insurer located in the country where the physical location exists. When you have a CMP, the master policy applies on an excess basis and a difference-in-conditions over the local policies to ensure you are completely covered.

Does your company conduct business in foreign countries? Contact Elite Insurance Solutions to learn more about foreign liability insurance and how our agents can protect your business outside of the United States.

By Randy Hulett on August 12th, 2015 | Tagged with: Tags: , , , , | Leave a Comment

Types of Business Insurance

Your business is one of the most important investments in your life, and you want to be sure it is fully protected with the best insurance policy available for your company. Our agents at Elite Insurance Solutions are experts at finding the right coverage to keep your business interests safe. We know the choices and options of business insurance policies can be overwhelming, so we would like to tell you about the different types of coverages to consider. The following information from the U.S. Small Business Administration can help you decide which types are best for you and your business.

GENERAL LIABILITY

To protect your business in the event of an accident, an injury, or a claim of negligence, a general liability business insurance policy will cover any payments as the result of bodily injury, property damage, medical expenses, libel, or slander. This type of coverage also covers the costs of defending lawsuits and settlement bonds or judgments needed in an appeal.

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PRODUCT LIABILITY

If your business manufactures, wholesales, distributes, or retails a product, you may be found responsible for its safety. A product liability business insurance policy protects you financially if you ever deal with a defective product that causes bodily harm or injury. Elite Insurance Solutions can help you find the right coverage to fit the products you sell or manufacture.

PROFESSIONAL LIABILITY

Also known as errors and omissions insurance, a professional liability insurance policy will protect your business from malpractice, errors, and negligence in provision of services you provide to customers. The state of Tennessee requires certain professions, like doctors, to carry this type of insurance.

COMMERCIAL PROPERTY

Covering lost and damaged property, including loss of income, buildings, computers, and business documents, a commercial property insurance policy is used in the event of fire, smoke, storms, civil disobedience, and vandalism. You can choose between an at-risk policy, which covers a wide range of incidences, and a peril-specific policy, that only covers certain risks, such as fire, flood, and crime. Elite Insurance Solutions can assist you with choosing the best commercial property insurance policy for your particular situation.

HOME-BASED BUSINESS

If you operate your business from your home, you cannot rely on your homeowner’s insurance policy to cover any business losses you could suffer. Our agents can look into adding special riders to your home insurance policy to cover your business as well as see if you need additional policies to cover other risks.

To be completely protected in your own business, contact Elite Insurance Solutions to talk to one of our agents about covering this significant investment.