Worldwide Insurance Coverage – Not always that wide
If you are doing business outside of the US, then having worldwide coverage is important. What we often find however, is companies relying on what is labeled as “worldwide” coverage in their domestic CGL policies. Review of the fine print usually points out that the policy will indeed cover claims for damages caused outside of the US – but only if the claim/suit is brought (filed) in the US. In this case, the carrier only intends to provide defense for you in the US.
While litigation is less frequent in other parts of the world, it is not practical to assume that a damaged 3rd party will travel outside of their home country to file charges. As such, finding a carrier and policy that will provide in-country representation and defense worldwide is key. Carriers offering true worldwide coverage either have their own resources placed strategically around the world to manage claims, or they have partner relationships with in-country legal representatives.
Bottom line – read, or have your Broker read, the actual policy wording regarding what the policy defines as worldwide. Remedies can be as simple as a policy form change or the addition of an international insurance policy – but the question needs to be asked.