International programme · local policies · jurisdiction
Chubb liability insurance for companies operating internationally
With sites in several countries, one Dutch policy is rarely enough. Not because the cover falls short, but because a number of countries require cover to be placed locally.
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Deze pagina in het Nederlands: Chubb aansprakelijkheidsverzekering voor multinationaal opererende bedrijven.
The calculator and the quote form below are in Dutch. Prefer to do this in English? Email info@finassverzekert. nl or call 072 - 509 24 56 and we will take it from there.
Work out for yourself what it would cost.
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- We compare the offerings of several insurers
- An adviser checks whether the cover suits your activities
- We arrange the switch, including cancellation
A premium indication, not personal advice. Prefer to talk it through? Call 072 - 509 24 56.
In brief
An international programme consists of a master policy in the country of the head office and local policies in the countries where you have a presence. That structure is not a matter of convenience: many countries do not allow a locally established company to be covered solely by a foreign insurer. Insuring without a local licence is called non-admitted and is prohibited in a range of countries, with fines and tax consequences for local management as a result.
The master policy then tops up where the local policy is lower or narrower. That is done through difference in conditions and difference in limits: the upper cover steps in on the points where the local conditions fall short or the sum insured is lower. Where no local policy is possible or needed, a financial interestprovision is sometimes used, under which the loss is paid as a financial loss of the Dutch parent rather than as a loss of the subsidiary.
The premium is not one amount either. Each country has its own insurance premium tax and levies on the premium booked locally, and that has to be paid in that country. For the basic cover and the usual exclusions, the same applies as with public and employers' liability insurance; advice risks belong on professional indemnity insurance and digital incidents on cyber insurance.
This page deals with one situation. The full overview is on Compare personal liability insurance (AVP).
What to look out for
Four points that lead to unpleasant surprises with cross-border activities.
Paying the wrong party
A payment from the Dutch master policy to a foreign subsidiary can be treated in that country as unauthorised insurance or as taxable income. The financial interestsolution was devised for that. Arrange this in advance for each country. Afterwards a payment can no longer be redirected to the right entity.
The territorial scope is not the same as jurisdiction
Worldwide cover means loss can arise anywhere. What you have to arrange separately is jurisdiction: claims brought before a court in the the United States or Canada are excluded as standard or covered only after an express extension. Punitive damages also remain outside the cover there usually.
Employers' liability follows local law
The duty of care of Article 7:658 of the Dutch Civil Code applies under Dutch law. Other countries have their own, often compulsory system for accidents at work that is separate from your liability policy. If you post staff abroad, check for each country what compulsory cover applies and whether your Dutch section continues to apply to posted employees.
Notifications from abroad
A claim that comes in at a site has to reach the right policy. Article 7:941 of the Dutch Civil Code requires notification as soon as you reasonably know; abroad, shorter or stricter deadlines often apply. Record who reports where, and that in case of doubt both the local and the master policy are always informed.
What does your premium depend on?
- Countries where you are established: each country brings its own rules and levies
- Consolidated turnover by region: the split weighs more heavily than the total
- Turnover in the US and Canada: the main loading factor in this segment
- Number of local policies: each local policy has its own costs and administration
- Sum insured and aggregate: of the master policy and of each local policy
- Claims record by country: a single market can determine the whole programme
Insurers weigh these details differently. That is where your saving is.
What is covered
| Situation | Dutch master policy | Local policy |
|---|---|---|
| A visitor is injured at your site in Poland and holds the Polish company liable | No | Yes |
| A claim in Spain exceeds the sum insured locally | Yes | No |
| Your fitters carry out a project in a country where you have no establishment | Provided that | No |
| Loss at a customer in a country subject to sanctions | No | No |
| A German customer holds you liable for a product made in the Netherlands | Yes | Provided that |
| An employee of the French subsidiary damages the customer's machine during assembly | No | Provided that |
The master policy tops up where the local cover is narrower or lower, but it does not take the place of a policy that country requires.
Frequently asked questions
This is what people ask us most.
Can I not manage with one Dutch policy with worldwide cover?
You can as long as you supply from the Netherlands and have no establishment abroad. As soon as you have a company, staff or a permanent establishment there, many countries require a locally licensed insurer. A single worldwide policy can then formally conflict with local rules, with risk for the local directors and for the payment itself.
What does difference in conditions mean?
The local policy follows the market in that country and is sometimes narrower than what you are used to in the Netherlands. Difference in conditions tops up those differences from the master policy, and difference in limits tops up the sum insured to the level of the programme. Without those provisions you get exactly the local minimum cover in each country and nothing more.
What happens with a loss in a country without a local policy?
The loss then falls in principle under the master policy, provided the territorial scope includes that country and the jurisdiction is not excluded. Whether the payment can also reach the right entity is a second question. The financial interest solution exists for that. Have it checked in advance for each country which route works, because it varies considerably.
Why are the United States dealt with separately?
The level of awards, the cost of proceedings and the possibility of punitive damages make that market a risk of its own. Insurers therefore exclude claims under US or Canadian jurisdiction as standard and only offer them on express application, for a separate premium and often with a separate excess and aggregate.
Read more
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