The global economy is thriving, and many American companies have employees that fill positions overseas. There are some challenges to be faced when your staff work in another country, and as an employer, you need to be careful of the liabilities it presents. Whether you have an employee in another country for a short-term travel need or for a long-term business assignment, it is important to remember workers’ compensation coverage.
The Presence of Risk
Business risks, especially in the area of workplace accidents, isn’t limited to U.S.-based operations. An employee could get into an accident that causes bodily injury overseas, catch a disease, or be injured during the process of repatriation. These liabilities can be claimed against the employer, making it necessary to carry a foreign work comp insurance plan. The plan covers a range of different employees. These could include:
- S. hires
- Third-country nationals
- Local nationals
- Independent contractors
The Importance of Coverage
FVWC plans are important since they can fill in the gaps left by a domestic workers’ comp plan or the company’s business travel accident plan. The challenges of a language barrier and diverse standards of care are better addressed with an FVWC over a U.S.-based plan that was underwritten according to U.S. policies and requirements. The coverage is also more inclusive of injuries or incidents that occur while moving between countries.