World Insurance
Definition
World insurance is a commercial liability framework that extends a company’s insurance protection to claims and losses arising anywhere in the world. It fills the gaps left by standard domestic policies, which typically limit coverage to the policy’s home country (for example, the U.S. and Canada).
Key takeaways
- Provides liability and related coverages for suits and losses that occur outside the policy’s home country, subject to policy terms and exclusions.
- Commonly purchased by multinational corporations, exporters, or domestic firms with international contracts or employees abroad.
- Often requires additional premiums or specialized endorsements and can be packaged with other foreign coverages.
How it works
World insurance is generally added to a company’s commercial liability program through endorsements or standalone foreign policies. It may cover:
* Legal defense costs and damages for bodily injury and property damage.
Product liability, contractual liability, personal and advertising injury, and other commercial risks specified in the policy.
Medical, repatriation, and emergency assistance for employees temporarily or permanently working abroad (when included).
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Because coverage needs and local legal requirements vary by country, insurers typically charge higher premiums and include restrictions or mandatory local policies. U.S.-based policies commonly provide limited or no automatic coverage for foreign losses, so organizations must assess exposure and obtain appropriate international insurance.
Common types of world/foreign coverages
These can be purchased together or tailored as a package depending on the scope of foreign operations:
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Foreign Commercial General Liability
Coverage for occurrences outside the home country, including suits filed in foreign jurisdictions. Essential for manufacturers, distributors, or service providers operating or selling overseas. -
Foreign Business Auto
Physical damage and liability protection for hired and non-owned vehicles used overseas. Often needed in addition to local rental company liability limits. -
Foreign Voluntary Workers’ Compensation / Employers Liability
Extends benefits and employer’s liability protection for employees traveling or assigned abroad. May include medical evacuation and repatriation. -
Foreign Commercial Property and Business Income
Protects property and contents at unscheduled locations (trade shows, transit, temporary offices) and can be expanded for owned or leased facilities overseas. -
Foreign Crime
Covers losses from dishonest acts by employees abroad, including theft, forgery, or robbery. -
Foreign Travel Accident and Sickness
Provides emergency medical, evacuation, and other travel-related protections for employees or travelers overseas.
Considerations when purchasing
- Assess geographic scope and types of exposure (operations, sales, employees, property in transit).
- Confirm applicable policy limits, exclusions, and territorial definitions (where coverage applies).
- Check local statutory insurance requirements and whether local policies must be placed.
- Decide between endorsements to a domestic policy, a multinational program, or locally admitted policies in foreign jurisdictions.
- Coordinate claims handling, legal defense strategy, and choice of counsel in foreign jurisdictions.
- Work with experienced brokers or risk managers to tailor coverages, limits, and cost-effective layers.
Conclusion
World insurance is critical for businesses with international exposure. Evaluate your global operations, understand territorial and legal nuances, and work with a broker or insurer to design a program that balances coverage, cost, and compliance with local requirements.