DEFINITION of Worldwide Coverage

Worldwide Coverage is an insurance policy provided by some insurance companies that globally covers the personal property of the insured against loss or damage. Examples of covered items include jewelry, furs, cameras, musical instruments, silverware/goldware, golf equipment, fine art (such as paintings, vases, antique furniture, oriental rugs, rare glass and china), collectibles, sports equipment and computer equipment.

BREAKING DOWN Worldwide Coverage

Certain insurance policies such as personal property insurance allow policyholders to add this type of coverage to their existing policy. The worldwide coverage can be requested in the amount needed for valuable possessions. Some limits apply to certain types of property, and some property might be excluded from coverage depending on the insurance company.

Coverage Territories

Insurance is a location-based business. Nearly every type of policy assumes it will be in force in a stated geographic area, known as the coverage territory. Most liability policies, for example, only cover incidents that occur in the coverage territory. 

Most policies issued in the U.S. include  the U.S. (with its territories and possessions), Puerto Rico and Canada. They would also cover international waters or airspace if the injury or damage occurs while a person or property is traveling between the U.S., Puerto Rico and Canada. 

For an additional cost, policies can include anywhere in the world other than the U.S.A., Puerto Rico and Canada. For a business, this might include liability for products used or sold outside the U.S. or even claims arising from something a business put on the internet that was accessed in another country. The limitation for many of these policies is that any suit must be brought in the U.S., Puerto Rico and Canada.

Standard auto policies include the U.S., Puerto Rico and Canada. Insurance for driving in Mexico, for example, must be bought in that country or as a rider to a standard U.S. policy.

Workers compensation insurance applies to the state it's purchased in but does extend to employees who are traveling in other states and overseas on a temporary basis.

Homeowners insurance is tried to the property insured but certain theft and liability coverage can extend to the location of the policyholder in another state or country, but only under certain, limited circumstances.

Liability insurance is any insurance policy that protects an individual or business from the risk that they may be sued and held legally liable for something such as malpractice, injury or negligence. Liability insurance policies cover both legal costs and any legal payouts for which the insured would be responsible if found legally liable. Intentional damage and contractual liabilities are typically not covered in these types of