Need For International Insurance Often Goes Unrecognized

Thanks to the web, today companies of any size can now operate globally. Many companies have expanded operations to include international sales, travel by employees, overseas manufacturing, importing and exporting of raw materials and finished goods. What has not expanded however, is the insurance portfolio to cover these new exposures.

Standard commercial insurance policies typically only provide coverage for claims and suits brought in the US, Canada and US territories. Activities occurring outside of this coverage territory are not covered by typical insurance portfolios. Many do not realize this.

All too often I discover companies operating globally with no insurance in place to protect them or their employees. The insurance portfolio needs to be considered a living asset. Periodic review and comparison of operations to coverages by a savvy Broker is essential for sound economic and operational security.

In-country insurance requirements of each country that an insured deals with need to be examined and accommodated as well. Doing so ensures that international insurance benefits will be allowed to respond to foreign claims and suits by the foreign government. Foreign national employees that travel to the US or elsewhere outside of their resident country need specific endorsement coverage as well.

            How far does your Product Liability coverage extend?

            When traveling internationally, are your employees covered for:

§         endemic disease?

§         food poisoning?

§         lost travel documents?

§         How about for legal issues that may arise?

International Insurance portfolios can include coverage for property, product liability, excess auto liability, workers’ compensation and more.

If you have questions about your insurance portfolio and what gaps in coverage may exist, call me. You can reach me directly at 858.202.6187.

Treat Your D&O Insurance Policy Like A Used Car... What?!

When you buy a new car from a dealer, negotiations focus on price. Performance of the vehicle is assumed and backed by a warranty. When you buy a used car from an individual owner, consideration is placed on both price and condition of the vehicle. Often you will have a mechanic inspect a used car to determine its fitness in an effort to avoid costly performance surprises later.

Avoid costly performance surprises from your D&O policy by having it inspected like a used car. 

Whether buying D&O insurance for the first time or renewing existing coverage, due diligence in determining policy fitness is highly recommended. Have policies analyzed for potential loopholes and gaps in coverage. Many do not realize that there is no ISO standard D&O policy – each insurance carrier writes their own. Since no two policies are alike, it is important to understand the terms, conditions and extent of exclusions of each policy considered. Once differences are identified, you can then negotiate both cost and performance.

Treating your D&O insurance policy like a used car will help to ensure that it works the way you expect it to when you need it.  

Claim Example:

A recent policy review for a nutraceutical company revealed that there was no coverage for mismanagement arising out of any EPLI (Employment Practices Liability) claim. While there was a separate EPLI policy, it specifically excluded cover for D&O claims. Had a claim arisen, the company and or officers would have been liable for the defense costs of the mismanagement claim.

Such a case played out for a San Diego research company that ended up paying $123K in defense and settlement costs for their HR Director because their D&O and EPLI policies contained the same exclusions.

OSHA Log and Summary - Time to Post!

It's that time of year again - when Cal OSHA requires the Log of Work-Related Injuries and Illnesses (Form 300) be posted for the previous calendar year from February 1 through April 30.

You must save the Cal/OSHA Form 300, the privacy case list (if one exists), the Cal/OSHA Form 300A, and the Cal/OSHA Form 301 Incident Reports for five (5) years following the end of the calendar year that these records cover. Failure to maintain and post the log could result in a Cal OSHA citation and fines costing an employer thousands of dollars.

If you need more information, or the forms, click here.

For a listing of those exempt industries in California, click here.

 

If you would like to discuss your situation, feel free to contact me directly at 858.202.6187.

 

Current clients can also contact Chris Malicki at the Pacific Safety Council for more information: 858-621-2313 x120