Important Considerations for Overseas Offices

BackgroundA technology parts manufacturer with growing revenues expected to exceed $100 million, told us that they were planning to open an office in the Netherlands. As it would be their fi rst overseas office, they needed advice and help in determining risk, exposure, and the best insurance solutions.ProblemFor overseas offices, insurance is an important consideration in both risk protection and compliance. Each jurisdiction has specific laws and requirements, including prohibitions against “non-admitted” insurers (insurers not licensed by that foreign government). Our manufacturer wanted to avoid duplication of coverage: only one insurer respond to a claim (many insurance policies declare themselves “excess” in the event of duplicate coverage). The company also wanted to determine how and where to place the primary coverage for their Netherlands office.SolutionWe recommended seeking the help of local insurance professionals in the Netherlands. Good advice in this instance, since standard insurance programs routinely cover the offices’ tulip beds (confirming the suspicion that the Netherlands regards its tulips as sacred!). With our client’s approval, we placed and managed local coverage with a wrap-around excess through the parent company.ResultsThe insurance coverage became part of a comprehensive global approach to corporate risk management. We managed the overseas local insurance within the entire corporate global program to assure coverage was compatible globally