Financial Interest Insurance: An Important Companion for Global Business

Elliott Foster, Managing Counsel, Travelers Insurance

According to an African proverb, if you want to go fast, go alone. If you want to go far, go together. Anyone who has traveled the globe—or even a modest distance from home—knows the truth in that adage. For companies transacting business outside of their home country’s borders, the same maxim applies. Whether your enterprise manufactures circuit boards, distributes commodities, sends workers across the globe or provides any array of professional services, you’re already keenly aware of the myriad laws, regulations, risks and rewards associated with multinational business. Some of those risks and rewards are static across borders, while others require navigating the unique systems, cultures and codes of the countries where your transactions and commerce take place. Obtaining insurance for that blend of global business risks and opportunities presents both worldwide and country-specific pitfalls as well. This paper paints a brief picture of the global insurance landscape as it applies to multinational business, and it identifies the questions to ask when insuring your company’s affiliated worldwide interests with financial interest coverage—an innovative companion to global business and a potential tool for successfully moving your franchise both fast and far.

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USA Insurance Insurance March 2021 Vol.14, No. 54, Winter 2021

Elliott Foster

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Elliott Foster is a Managing Counsel for Travelers Insurance Company, specializing in international insurance with a focus on regulation, coverage, product development, and trade sanctions. This paper does not amend, or otherwise affect, the provisions or coverages of any insurance policy or bond issued by Travelers. It is not a representation that coverage does or does not exist for any particular claim or loss under any such policy or bond. Coverage depends on the facts and circumstances involved in the claim or loss, all applicable policy or bond provisions, and any applicable law. Availability of coverage referenced in this document can depend on underwriting qualifications and state regulations.

Travelers Insurance

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The Travelers Companies, Inc. (NYSE: TRV) is a leading provider of property casualty insurance for auto, home and business. A component of the Dow Jones Industrial Average, Travelers has approximately 30,000 employees and generated revenues of approximately $32 billion in 2020. For more information, visit Travelers.com.

USA Insurance Insurance March 2021 Vol.14, No. 54, Winter 2021