Non-profit with incidental international exposure
Posted: Mon Oct 01, 2012 3:44 pm
I have a small CA non-profit that I placed with Philadelphia Ins Co for GL and D&O and CNA for workers compensation. They have just informed me that several times a year they will have staff members who will need to travel out of country and outside the coverage territory to provide training to groups withint those countries. I would like to get your opinion on two issues.
The first issue is the workers compensation. The policy has an exclusion which excludes bodily injury occurring outside the United States, Canada, and its territories with an exception for bodily injury to a citizen or resident of the U.S. who is temporarily outside of the U.S. It does not define "temporarily" but these trips are only a couple of weeks at a time so seems like that will fit the definition. Ok, great I think. But let me do some research anyway. Most of what I've read says that If you have workers who travel overseas, coverage gaps and ambiguous definition in your standard workers’ comp policy could result coverage disputes and that the safe bet is to request the carrier put a Voluntary Foreign workers endorsement onto the policy. CNA states that they cannot provide that endorsement or coverage. When I contacted State Fund, they said they would not be able to provide that endorsement but that if the employees travel overseas and were hired in CA, there would be coverage. My interpretation of the CNA policy is that there would be coverage as well, but when I have an email from underwriting stating "While CNA does not have a problems with the insured making a trip overseas once a year, we cannot offer any coverage for it."
The second issue is the General Liability. Philadelphia cannot offer any coverage for any incidental international exposure. Being a small account, I anticipate that if Philly can't do it, some of the other insurers who cater to non-profits may not be able to do it. Is there a supplemental policy that can bridge the gap? Otherwise I may be looking at obtaining a quote from a carrier that may end up being cost prohibitive for the insured.
Thanks and look forward to hearing opinions.
The first issue is the workers compensation. The policy has an exclusion which excludes bodily injury occurring outside the United States, Canada, and its territories with an exception for bodily injury to a citizen or resident of the U.S. who is temporarily outside of the U.S. It does not define "temporarily" but these trips are only a couple of weeks at a time so seems like that will fit the definition. Ok, great I think. But let me do some research anyway. Most of what I've read says that If you have workers who travel overseas, coverage gaps and ambiguous definition in your standard workers’ comp policy could result coverage disputes and that the safe bet is to request the carrier put a Voluntary Foreign workers endorsement onto the policy. CNA states that they cannot provide that endorsement or coverage. When I contacted State Fund, they said they would not be able to provide that endorsement but that if the employees travel overseas and were hired in CA, there would be coverage. My interpretation of the CNA policy is that there would be coverage as well, but when I have an email from underwriting stating "While CNA does not have a problems with the insured making a trip overseas once a year, we cannot offer any coverage for it."
The second issue is the General Liability. Philadelphia cannot offer any coverage for any incidental international exposure. Being a small account, I anticipate that if Philly can't do it, some of the other insurers who cater to non-profits may not be able to do it. Is there a supplemental policy that can bridge the gap? Otherwise I may be looking at obtaining a quote from a carrier that may end up being cost prohibitive for the insured.
Thanks and look forward to hearing opinions.