Does your client need global insurance?

Your client starts ventures around the world. While he’s concerned with rustling up capital and breaking ground for new offices, there’s one issue you must raise: global insurance for his employees.

Canadian law imposes a fiduciary duty on employers to protect employees from security and medical risks worldwide. If employees travel on business, they’ll need medical care and security evacuation insurance. This covers:

• benefits for accident or sickness while travelling on business
• benefits not reimbursed by provincial health plans
• Out-of-pocket expenses and emergency evacuation
• Accidental death and dismemberment

Specialized plans might not cover losses as a result of terrorist attacks or war, so it’s critical you explain this. To avoid a denied claim, a client may opt for higher premiums to cover additional risks. Determine if certain exclusions, such as war risks, should be removed from the contract, by analyzing your client’s company’s activities:

• Will the company conduct business during days of national significance, when militant groups have historically planned attacks?
• Are the company’s plants or offices in business districts that are frequently the site of protests?
• Does it require employees to travel through disputed or war-torn regions?
• Does it provide room and board for international employees?

The web site www.voyage.gc.ca lists riskier countries that might require higher rates. It also lists historical incidents, common crimes, dates of concern and civil conflicts. Any alteration to contract terms must be communicated between the client and the insurer. The advisor has no legal right to alter any terms. Make sure any changes are in writing and clearly delivered to the client from the company.