A United Kingdom policy is written for United Kingdom exposures, and two clauses decide how far it reaches. Businesses discover them at the point where a claim happens in a country the schedule never mentioned.
Territorial limits and jurisdiction are two clauses
The territorial limit says where an event can happen for the policy to respond. The jurisdiction clause says which country's courts can hear the claim. A policy can cover an incident occurring worldwide while excluding proceedings brought in certain jurisdictions, which is the usual shape for United Kingdom business cover. Selling into a market with a different legal culture and larger awards is therefore a question about the jurisdiction clause as much as about the territory.
Where a local policy is required
Many countries require insurance covering local risks to be written by an insurer admitted in that country. A United Kingdom policy covering a local subsidiary or a permanent presence can be non compliant there even where it would pay, and a claim can face tax and regulatory problems on settlement. Businesses with staff, premises or a registered entity abroad usually need a local admitted policy, sometimes with a master policy above it, which is a broker's job rather than an online purchase.
Staff who travel and staff who are based abroad
Employers' liability written for the United Kingdom covers work here, and temporary business travel is often included. An employee based abroad for an extended period, or locally hired, generally is not. Business travel cover for medical costs and evacuation is a separate product, and some destinations carry requirements of their own. The distinction that matters is between somebody visiting and somebody working there, and it is usually drawn by time.
Exports, products and the market you sell into
Products liability follows the goods, so a product sold abroad creates exposure in that market's legal system. Cover for exports is normally either excluded, limited to particular territories or separately rated, and marketplaces make it easy to sell into a jurisdiction nobody chose. A business exporting should establish which territories its products cover names, because that is one of the few clauses where the answer changes by an order of magnitude between countries.
Questions people ask about international business insurance
Does a UK policy cover work abroad?
Only within its territorial limit, and subject to the jurisdiction clause. Many UK policies cover worldwide events while excluding proceedings in certain jurisdictions.
When is a local policy required?
Where a country requires insurance of local risks to be written by an admitted insurer, which usually applies once there are staff, premises or a registered entity there.
Are exported products covered?
Only to the territories named. Export cover is commonly excluded, limited or separately rated, and marketplace sales make it easy to sell outside those limits.