What is 'World Insurance '

World insurance is a commercial liability policy with extended global coverage. World insurance provides coverage in the event the policyholder is sued anywhere in the world. In general, however, commercial liability policies have a geographic limit for coverage. It is common for companies with global operations or who have contracts with international partners/associates to purchase this type of world coverage.

BREAKING DOWN 'World Insurance '

World insurance requires the policyholder to pay an additional premium. In addition to property and workers compensation insurance, commercial liability insurance (also referred to as general liability insurance) is essential to businesses. This insurance protects the assets of a business in the event it is sued for alleged bodily injury or property damages. The insurer may also cover damages and legal expenses associated with covered claims involving actual or alleged: product liability, contractual liability, personal injury, advertising injury and other commercial risks as indicated in the policy.

It's important for organizations to understand the scope of their insurance needs for their international business operations. It's critical to protect corporate assets, and most insurance policies placed in the U.S. provide limited, if any, coverage for losses occurring abroad. There are numerous specialized world insurance policies available to companies for conducting international business that are designed to provide global protection. 

Types of World Insurance

Depending on the extent of the foreign business being conducted, typical coverages to consider are as follows:

  • Foreign commercial general liability coverage is similar to domestic liability coverage; but it's for foreign occurrences and includes protection for U.S. occurrences when a suit is brought outside the U.S. or Canada. This type of coverage becomes necessary if manufacturers and distributors that sell products outside of the U.S. are sued in foreign jurisdictions. A U.S.-based policy would only covers lawsuits that are filed in U.S. or Canada.
  • Foreign business auto coverage protects against physical damage and liability coverage for hired and non-owned vehicles operated overseas. Coverage is typically needed for limits over and above the minimum or statutory limits that are required to be purchased from the rental company in the foreign country.
  • Foreign voluntary workers’ compensation/employers liability coverage extends benefits for U.S. employees while traveling overseas or assigned to work outside the U.S. and Canada. Coverage can include medical assistance programs and repatriation expenses.
  • Foreign commercial property and business income coverage affords protection at unscheduled locations while in transit for laptop computers, sales samples and personal property at trade shows overseas. A more extensive policy may be required for owned or leased facilities.
  • Foreign crime coverage protects against losses from dishonest acts perpetrated by employees overseas, including forgery, theft or robbery.
  • Foreign travel accident and sickness coverage provides additional protection in the event of an emergency while traveling overseas.

Many of these and other foreign liability coverages can be packaged and purchased together and added to as business needs change.

RELATED TERMS
  1. Business Liability Insurance

    Business liability insurance protects a company and/or business ...
  2. Garage Liability Insurance

    Garage liability insurance is purchased by automobile dealerships ...
  3. Worldwide Coverage

    Worldwide Coverage is an insurance policy provided by some insurers ...
  4. Coordination Of Coverage

    Coordination of Coverage is a process undertaken by insurers ...
  5. Combined Physical Damage Coverage

    Combined physical damage coverage is auto insurance designed ...
  6. Automatic Additional Insured

    Automatic additional insured refers to insurance coverage that ...
Related Articles
  1. Insurance

    Insurance Coverage: A Business Necessity

    Don't go to work without this policy in place - especially if your work is in your home.
  2. Insurance

    Top Tips for Cheaper, Better Car Insurance

    Accident, theft, vandalism - make sure your coverage will protect you when you need it most.
  3. Insurance

    An Advisor's Guide to Prof. Liability Insurance

    A guide to what financial advisors need to know about professional liability insurance.
  4. Insurance

    4 Reasons Why Waiting To Buy Life Insurance Is a Bad Idea

    Understand the benefits of applying for and securing life insurance coverage while you are young and healthy, and learn the cost of waiting to get coverage.
  5. Insurance

    Auto Insurance: A Beginner's Guide

    Find the perfect policy that suits both your coverage and budgetary needs.
  6. Insurance

    How to Find the Right Car Insurance

    Finding the right car insurance can be difficult. However with these strategies, you can get the most for your money, protect your assets and your health.
  7. Insurance

    What Is and Isn't Covered by Homeowner's Insurance

    Understanding what your insurance covers can be confusing. Learn what almost all insurance policies have in common so you're prepared if disaster strikes.
  8. Insurance

    When Should You Get Supplemental Life Insurance?

    For individuals with larger families and responsibilities, supplemental life insurance may bridge the shortfall in coverage from term or whole-life policies.
  9. Insurance

    Do You Need Umbrella Insurance For Household Help?

    Homeowners insurance may not be enough – say, if your nanny sues for damages after an accident. That's where umbrella coverage comes in.
  10. Insurance

    Why Your Company Insurance Coverage Isn’t Enough

    Even if you have group life or disability insurance, it pays to have individual coverage too.
RELATED FAQS
  1. Can an Insurance Company Deny Coverage?

    Insurance isn't always as straightforward as other products, and insurers can deny coverage in many different instances. ... Read Answer >>
  2. What is a bad interest coverage ratio?

    Understand how interest coverage ratio is calculated, what it signifies, and what market analysts consider to be an unacceptably ... Read Answer >>
  3. Why is my insurance premium so high/low?

    Insurance premiums can be affected by many factors including: type and amount of risk size of deductible amount of coverage ... Read Answer >>
Trading Center