Starts with a US entity
We often get requests from companies domiciled in other countries about buying US insurance. Typically it involves purchasing General Liability insurance required by retailers and distributors here in the US.
Insurance companies in the United States typically require the insured on the policy be a US entity in order to buy US insurance. Ownership by foreign entities can be accommodated but insuring a US entity is a must.
Is there a US employee in place?
Although each case can be different keep in mind a couple of things. Insurance companies may want to complete and inspection. This is routine but can be required depending on the coverage placed and the insurance company.
Insurers who want to verify information may want a US contact they can talk to. We have seen some conduct a phone interview instead if the principal contact is not physically in the US.
If a US employee or independent contractor located in the US is present, it makes the inspection process smoother.
Don’t forget, if a US employee is in place, workers compensation insurance is mandatory in most states.
Be sure to give some thought to how US transactions with insurance companies will be facilitated. Insurance may not be a one and done transaction.
Premium audits and renewal applications, along with payments, will continue so plan ahead as to how these types of transactions can get done efficiently.
Where are you doing business?
The state of incorporation is less important than where you will conduct business. A popular place of incorporation can be Delaware but that often does not hold true for ongoing business.
State of operation matters more than state of formation.
A US address and phone will be needed even though much is done via email Be sure both have adequate coverage.
General Liability coverage in the US includes a coverage territory of all US states, territories and possessions, plus Puerto Rico and Canada. Products sold outside this territory may still have coverage BUT any suits need to be brought in the coverage territory. This makes US insurance not a safe bet outside the areas noted.
If you need assistance withy buying US insurance contact us!