Cross Border Business Insurance

Helping European Companies Setting Up Operations in the U.S. in need of Business Insurance?

In the last several years, we have been engaged by European firms setting up operations here in the United States for their business insurance.  And thought a video on the subject might be interesting.

The first question you may be asking is: why a firm, an EU firm, needs coverage in America? Doesn’t their current insurance cover them already? 

In most cases, the answer to that question is no.  Most policies, regardless of where they are purchased, have territorial restrictions. Here in the U.S., most policies restrict coverage to the U.S., its territories and possessions, Puerto Rico, and Canada.  In Europe, the territorial definition can change from country to country, but what I’ve seen is the geographical limit to the country of origin, or within the EU, or worldwide coverage is provided, but excluding the USA and Canada.  Most insurers in Europe do NOT want to deal with claims originating in the U.S. due to the high legal and settlement costs. 

So if your firm is opening up shop in, say, New York or anywhere in the U.S., what do you do?

There are two steps I recommend: 

First, speak to your current broker in your home country.  Can coverage be broadened, even for an additional premium to include operations within the U.S. on all current policies?  For most small and medium-sized firms, this doesn’t work, unfortunately.  This is more applicable for larger firms with a more global footprint that uses a global insurance broker. 

If that doesn’t work, engage with a broker here in the U.S. that can coordinate cross border business insurance coverages between your home coverage and U.S. coverage.  I am, of course, happy to assist here.  And if you plan on opening multiple offices in several states or engage workers in different states, make sure you have a broker who can coordinate the various state laws on worker’s compensation insurance and similar coverages.  Again, happy to assist here as we have licenses in most states and can accommodate these issues. 

Then there are other business operating issues outside of insurance such as payroll, taxes, accounting, health benefits, real estate, and legal that you’ll need to consider. I have a deep bench of experts in various fields that I’d be happy to share with you and your team to make sure we’re covering all the bases. 

The big point I want to make is that you should be engaging a broker with deep domain expertise in your industry who can coordinate the right coverages for you and help explain and educate you on the way insurance functions here in the United States, in addition to working with your current insurance providers to make sure there aren’t duplications or gaps between your home country and here in the U.S. 

Have other questions regarding business insurance here in the U.S> and how we can coordinate it with your current coverage?  Click the button below to get started on setting up a time to chat.  I’d love to help and make the process as easy and seamless for you as possible.

Thanks.