Are you exposed to global risks?
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Are you exposed to global risks?

With the increasingly global nature of business it is not unusual for many companies to establish a local presence outside the UK. This raises many issues including:

  • Do you employ locals or UK nationals?
  • What legal structure will be adopted?
  • Should local insurances be placed or can risks be covered from the UK?

If left to their own devices local offices may not put in place cover at all or arrange local cover which is:

  • Inconsistent with group practice
  • Limited in its scope
  • Inadequate for potential liabilities
  • Overlapping with the UK arrangements

The above approach fails to make use of group purchasing power and implementation of a group philosophy can be hard to achieve.

Our usual method is to assist the parent company to decide on an insurance programme incorporating local cover (where required) and 'umbrella' protection from the UK. This reduces the risk of gaps in cover whilst maintaining local office involvement. Advantages of our approach are as follows:

  • Allows autonomy for local management
  • Premiums are fully tax deductible on a local basis
  • Policies are more easily understood by local management
  • Local management retain interest in insurance and loss prevention
  • Local broker and insurer service
  • Uniform level of cover
  • Compliance with local legislation
  • Takes advantage of group purchasing power
  • Broad policy cover at a lower premium

This programme enables the parent company to insure its assets, earnings and liabilities to a consistent level of protection and minimise any gaps in cover.

The choice of the insurer when selecting the above strategy is also crucial, with some insurers having high minimum premiums for each policy placed in a territory. Expertise and office infrastructure is also critical in selecting an appropriate carrier.

Global risk management

Through our international client base Griffiths & Armour have extensive experience in placing global insurance programmes.

If you have assets or offices outside of the UK we would be happy to discuss the best approach for you and can advise on the local legal requirements for each territory.

For further information please contact us on:

Freephone: +44 (0)800 111 4330

Email: info@griffithsandarmour.com

Additional Documents

Our 'Cover Story' publication