Terrorism Coverage Has Become a Necessity for Some Expatriates
It is an unfortunate reality that living abroad today can be just as risky as ever. Recent events have shown that many parts of the world are becoming increasingly volatile. Whether your move is for business or pleasure, understanding and predicting future medical needs can be very difficult.
Why is Terrorism Coverage Needed for Expat Employers?
Terrorism coverage is essential for expat employers employing staff in higher-risk countries, but note that terrorism can strike almost anywhere at any time, so having it in place for all employees is often necessary. Unfortunately, given the evolving global security landscape and the potential risks employees face working abroad, we often recommend terrorism and passive war risk coverage for our clients. Here are five key reasons why terrorism coverage is important:
- Risk Mitigation: Obtaining terrorism coverage helps expat employers mitigate the financial risks associated with acts of terrorism targeting their employees or business operations abroad.
- Often Affordable: Depending on the countries your expat staff are based in, terrorism coverage can be included at no cost by some global benefit plans or at an extra charge.
- Part of Duty of Care: As noted, terrorism can strike anywhere, so global employers should remember that having terrorism and war risk coverage can help them properly protect their employees posted abroad and help them meet their duty of care. It demonstrates that your organization is committed to providing employees with access to resources and support in the event of a terrorist attack or threat.
- Compliance with Contractual Obligations: In some cases your firm may be mandated to provide passive war risk and terrorism coverage, such as contractual agreements with clients, suppliers, or regulatory bodies.
- Peace of Mind: The chance of incurring a claim related to war or terrorism is very low for most expat employers, but having it in place provides executives and shareholders with the confidence that employees will be properly covered if an event occurs. We have had clients impacted by terrorist events and have seen how critical the coverage is.
How To Obtain Terrorism Coverage?
If you’re relocating on a fixed contract, you may be fortunate enough to have your insurance provided by your employer — they will likely have a better idea of how much health coverage is required for your stay. Otherwise, seeking out expatriate medical insurance is essential to maintaining your health, safety, and peace of mind.
Even with the ability to relocate nearly anywhere in the world, health and safety risks for expatriates have increased once again with the political unrest in the Middle East, especially with advances made by the terrorist group ISIS. Seeking special risk coverage is a necessity when travelling to countries in conflict. Earlier this year, this coverage became even more crucial for expatriates in some European countries as the Russia-Ukraine conflict persists. Terrorism is a real danger for expatriates spending their residency in countries such as these.
Many insurance policies for expatriates will exclude war and terrorism-related claims, so it is vital that individual expatriates and their employers secure plans which will cover war and terrorism. More information on global insurance plans to cover expatriates can be obtained at Expat Financial.
