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. Garage Liability Insurance

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

    Worldwide Coverage is an insurance policy provided by some insurers ...
  3. Commercial Package Policy (CPP)

    A commercial package policy is an insurance policy that combines ...
  4. Commercial Multiple Peril Policy

    A commercial multiple peril policy offers at least two forms ...
  5. Combined Physical Damage Coverage

    Combined physical damage coverage is auto insurance designed ...
  6. Backdated Liability Insurance

    Backdated liability insurance provides coverage for a claim that ...
Related Articles
  1. Insurance

    An Advisor's Guide to Prof. Liability Insurance

    A guide to what financial advisors need to know about professional liability insurance.
  2. 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.
  3. Insurance

    Millennials Guide: Picking the Right Car Insurance

    Millennials fall into the category of high car-insurance rates. Check out some of the ways to save money, like owning an older car or leasing a vehicle.
  4. Insurance

    Beginner's Guide To Auto Insurance

    Find the perfect policy that suits both your coverage and budgetary needs.
  5. Managing Wealth

    6 Insurance Policies That Protect the Wealthy

    Here are six types of insurance that the wealthy use to protect their assets.
  6. 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.
  7. 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.
  8. Insurance

    6 Best Renters Insurance Providers

    Here are six companies that consistently offer excellent renters insurance at competitive rates.
  9. Insurance

    5 Types Of Insurance You Can (And Should) Afford

    With insurance and warranties being offered on seemingly everything, it's hard to know what policies are worth your money. Learn about five affordable insurance policies that are worth considering.
  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. What is the difference between legal liability and public liability?

    Discover the differences between a general legal liability, a specific public liability and a professional indemnity in the ... Read Answer >>
  2. What is a bad interest coverage ratio?

    Understand how interest coverage ratio is calculated and what it signifies, and learn what market analysts consider to be ... Read Answer >>
Hot Definitions
  1. Futures Contract

    An agreement to buy or sell the underlying commodity or asset at a specific price at a future date.
  2. Yield Curve

    A yield curve is a line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but ...
  3. Portfolio

    A portfolio is a grouping of financial assets such as stocks, bonds and cash equivalents, also their mutual, exchange-traded ...
  4. Gross Profit

    Gross profit is the profit a company makes after deducting the costs of making and selling its products, or the costs of ...
  5. Diversification

    Diversification is the strategy of investing in a variety of securities in order to lower the risk involved with putting ...
  6. Intrinsic Value

    Intrinsic value is the perceived or calculated value of a company, including tangible and intangible factors, and may differ ...
Trading Center