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What is my “Coverage Territory” for Commercial General Liability Insurance?

By September 25, 2019 October 7th, 2019 No Comments

You recently took on a new vendor and a few clients overseas, plan to visit them a few times per year, and wonder if your GL policy coverage extends around the world. The short answer is, it depends.

As a reference, here is how the ISO Commercial General Liability Policy defines “Coverage Territory:”

a. The United States of America (including its territories and possessions), Puerto Rico and Canada; (note: Mexico is not included!)

b. International waters or airspace, but only if the injury or damage occurs in the course of travel or transportation between any places included in Paragraph a. above; or

c. All other parts of the world if the injury or damage arises out of:
(1) Products made or sold in the territory described in Paragraph a.,
(2) Temporary business travel of a resident of the territory described in Paragraph a.; or
(3) Personal and advertising injury takes place through the internet,

AND

Any lawsuit must be brought in the U.S., including its territories and possessions, Puerto Rico and Canada; or if there is an agreement to settle, we (the insurance carriers) agree to

Your GL coverage territory can be expanded by endorsement to include “Worldwide Coverage” or “Additional Scheduled Countries.” International Policies can be purchased to cover your international exposure if your risks are more frequent and significant.

When you work with us, we have regular conversations about your international business exposure so the coverage territory of your insurance program aligns with your current operations. Contact us to start that conversation today.

Damien Brown, MBA

Author Damien Brown, MBA

Business Insurance Executive
dbrown@vfcadvisors.com
484-965-9619

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