A recent decision highlights the need for companies to carefully consider the application of cross-border insurance cover. In this case, the owners traveled to a restaurant in Idaho to Thailand for business related to the restaurant. While in Thailand thieves stole uniforms and decorations from the owners, who then left an insurance claim. The insurer rejected the claim because the policy only covered property within the "coverage area", which was restricted to the United States, its territories and Canada.
The decision is another example of why companies that operate across international borders should take care to ensure that they are adequately covered. Extending the definition of "coverage area" is often one of the first changes that should be made to ensure proper coverage of cross-border activities. For example, companies operating in US territories, such as Puerto Rico, the US Virgin Islands, and others should ensure that coverage is not limited to continental states, as is often the case. For other cross-border related posts, click here.