Traveling abroad for work? There are many things that you need to think about while moving overseas. And insurance should be on top of your list.
It’s a requirement in most countries and getting injured or sick while being uninsured is a financial disaster. So you need to figure out how to get insured to avoid the gamble.
We are here to educate you on the different kinds of insurance. So let’s begin.
1. Liability Insurance Abroad And At Home
Chances are that you may accidentally damage the property while at work. Here international liability insurance comes in place. It covers all the incidents outside the home country.
Will you be sued in the country where the accident happened, or will the suit be brought back to your home country?
It can be either, and you will need insurance to save you in both cases. Thus ensuring that the insurance would answer all the claims in the court of your work country.
2. Employee Injuries And Sickness
If the employees have coverage under the domestic worker’s compensation policy, will this policy work outside the country?
In some countries, workers comp policies give a little coverage for lost wages and medical expenses when workers are employed outside the country. But such policies are not made with international travel in mind. So they will not apply to employees who work on long-term projects outside the country.
Companies with overseas employees need to carry such insurance to reply to medical emergencies while traveling. Even if the domestic policies provide coverage, they will not cover things like endemic disease and emergency evacuation expenses.
Will the worker’s comp policy apply if the employee gets injured when sightseeing on the weekend? Probably not.
Will the employer have any legal obligation or experience moral obligation to help the employee? Most likely.
For such reasons, most companies get insurance for working abroad that do the following:
- Give emergency medical expense coverage
- Have apps and helplines to assist travelers in obtaining medical care
- Provide coverage for medical transportation costs if the employee gets injured in any remote location
- Have coverage for 24 hours a day so that the employee receives coverage during the trip, not just during working hours
- Pay lump sum or monthly benefits in case of injury or death
3. International Health Insurance
Companies are unlikely to get insurance for routine visits to the doctors and non-emergency medical coverage for the employees. The non-emergency holidays can be delayed until they return to their home country.
Will the employees have health coverage when living abroad for any work assignment?
Get insurance that has a longer-term contract and can provide routine medical care. For instance, you should get annual check-ups, maternity care, and treatment for allergies.
If they have a medical or domestic policy, will it give sufficient coverage while overseas? Will they have direct payment arrangements with local providers and doctors? Or do employees have to pay money upfront and then ask for a claim?
International health insurance should cover expats if any emergency medical treatment is not good enough. And if the employer wants to give any preventative healthcare, dental or vision, maternity coverage, or mental health treatment, they can.
4. Defense Base Act Insurance
Let’s suppose you have a job at the US government, the US base, or embassy. In this case, you will need to buy Defense Base Act (DBA) insurance. It’s a worker’s compensation insurance that almost all US government contractors and subcontractors are required to get.
It won’t matter who the owner of the company is or what the nationality of the employees is. If the contract clearly states that the Defense Base Act is needed, you will have to get it. This policy is required by every contractor working with US Government property outside of the country. In the case of other countries, check with your employer or insurance company for assistance.
Now let’s suppose your contract is in Switzerland; this may not be an issue then. But there are some parts of the globe where kidnapping is a real threat.
Even if the place looks safe, there are still chances of virtual kidnapping. Who do you ask for help if you are not in your home country and get a kidnapping call? They may threaten to hurt your loved one unless you give them the ransom. The first question to pop in your mind will be, is it a scam, or is it real?
Suppose a company purchases a Kidnap and Ransom (K&R) policy. In that case, they are giving money for professional expertise and advice, and financial protection. In countries where kidnapping is common, the chances of kidnap increases with the increase in contract duration. Gangs like to research their victims and know their travel patterns. All this so they can perform the activity at a less complicated time.
So, check the kidnapping status of the country before you move and get the insurance to avoid any trouble.
If you are a company employing overseas candidates or are an overseas employee, knowing the types of insurance policy is essential. Because it will help you understand which one you need in case of emergencies.
So, get all the knowledge you can before you start your new job!
Want to know about insurance policies? Here is all that you will need to pick the insurance that suits you the most.