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Foreign Insurance Exposures

By: Donna L. Malkasian
Posted: March 3, 2011, from the March 2011 issue of GCI Magazine.

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In addition to added coverage, there is usually a financial benefit in a foreign package. Normally, the rate charged for foreign sales under a domestic general liability policy is significantly greater than that on a foreign general liability policy. The rate is usually less because the legal climate outside the U.S. coverage territory is less favorable for injured parties filing lawsuits in foreign jurisdictions versus the U.S. legal system.

Minimum annual premiums start as low as $2,500 and include general liability limits of $1,000,000 with no deductible. Increased limits of liability are available at a reasonable cost. Like most insurance policies, terms and conditions vary by insurance company, so take your time in choosing the appropriate policy for your business needs.

Coverages

The following are some significant insurance coverages included on a foreign package policy available to beauty brands, manufacturers, distributors, importers and exporters:

Foreign Products Liability: When your company manufactures and/or distributes products outside the U.S. coverage territory, a foreign liability policy will protect your company in the event it faces a foreign products liability lawsuit.

Foreign General Liability: When your company rents offices or runs meetings, demonstrations or tradeshows in foreign countries, a foreign liability policy will protect your firm for damages or injuries arising from such operations.