September 15, 2016
Global Travelers, Global Risks
As the global economy grows, the need for small to mid-sized companies to travel abroad to do business becomes more common, but what are the risks? Despite excitement an employee may experience when visiting a new country, there are real risks that have far-reaching consequences to your business.
What are the exposures?
- Employees can be targets for kidnap and extortion.
- Extortions can result in hundreds of thousands to millions of dollars – potentially devastating a company’s bottom line and impacting the families of those involved.
- Other risks include: theft of personal or company property, terrorism, natural disasters, accidents in rented autos and medical emergencies.
What can be done to minimize foreign travel related risks?
While there is no sure way to prevent criminal acts, especially for employees traveling to a foreign country, there are some ways to mitigate the risk of becoming a target for criminals.
- Do research: Before leaving for the new country, the employer and employee should research their destination. Have a plan to ensure their health and safety during their stay. This includes where to find help if they get sick and who to call if they lose their cell phone. Before their visit, be sure to understand the country’s state of political affairs and infectious diseases. Is the incidence of kidnapping particularly high in the country in question?
- Have a plan: If an emergency happens while your employee is abroad, what is the plan? Who do they call? Your employee should actively assist in the creation of this plan.
- Know the risks: Assess the risks of sending an employee abroad. Are they a major stakeholder and obvious target for kidnappers and extortionists? If this is the case, what’s your backup plan, and are your employees insured for these risks?
Make sure you’re covered.
A comprehensive plan can help mitigate a huge financial loss in the event of a hostage situation or extortion. Ask your Avalon representative about what types of coverage is available when your employee is conducting business in a foreign country. Some insurance available may include:
- General Liability Insurance
- Foreign Voluntary Workers’ Compensation
- Commercial Automobile Liability
- Personal Property Protection
- Blanket Accident Insurance
- Kidnap/Ransom and Extortion
- Political Risk
- Products Withdrawal Expense
Learn more about Avalon’s Exporter’s Package Portfolio which includes kidnap/ransom and extortion coverage among many other potential gaps in your businesses global operations – from foreign offices to business trips. Contact your local Avalon Representative or email us today.