Worldwide coverage ensures that your insurance policy extends its protection against loss or damage no matter where you are in the world. Whether for your business or personal property, understanding this type of coverage can be essential for safeguarding your assets globally.
Key Highlights
- Worldwide coverage offers global protection for insured businesses or individuals against loss or damage.
- Coverage periods may be limited and require periodic renewal.
- Documentation and premiums vary based on the type and value of coverage.
- This coverage typically applies to personal property, business interruptions, and crime.
- U.S.-based policies often cover the U.S., Canada, and Puerto Rico, with international extensions available at additional costs.
- Policies without specified coverage territories usually imply global coverage.
Understanding Worldwide Coverage
Certain insurance policies, such as personal property insurance, allow you to opt for worldwide coverage by paying an additional premium. This upgrade can be customized to the amount needed for valuable possessions, with specific limits and exclusions depending on the insurer.
Different countries have varying laws, so worldwide coverage generally focuses on property, business interruptions, and crime. Carefully review where your insurance applies before opting for coverage.
Insurance policies can distinguish between blanket coverage, which covers items within a price range, and scheduled coverage for individual high-value items, requiring specific documentation and purchase receipts. Note that some worldwide coverages may only be valid for a specific time period.
Examples of items typically covered include:
- Jewelry
- Furs
- Cameras
- Musical instruments
- Silverware/Goldware
- Golf equipment
- Fine art (paintings, vases, antique furniture, oriental rugs, rare glass, and china)
- Collectibles
- Sports equipment
- Computer equipment
Coverage Territories Explained
Insurance is predominantly a location-specific business. Most policies are valid in a defined geographic area, known as the coverage territory. For example, many liability policies cover incidents within the designated territory.
In the U.S., standard policies include coverage for:
- The U.S. (including territories and possessions)
- Puerto Rico
- Canada
Such policies often cover incidents in international waters or airspace when traveling between the U.S., Puerto Rico, and Canada.
For an additional fee, policies can extend coverage globally. This might cover product liability outside the U.S. or online claims accessed from other countries, though legal actions must usually be pursued within the U.S., Puerto Rico, or Canada.
Types of Insurance and Their Coverage Territory
- Commercial Auto Policies: Standard coverage includes the U.S., Puerto Rico, and Canada. Mexico requires separate policies or riders.
- Workers’ Compensation: These policies apply based on state laws but may cover temporary out-of-state or overseas travel.
- Homeowner’s Insurance: Coverage is usually tied to the insured property. Some liability and theft coverage extend internationally under specific conditions.
- Health Insurance: Most policies cover health issues worldwide. A U.S. policy, for example, may cover injuries sustained abroad, such as a skiing accident in France.
If no coverage territory is specified, the policy is generally considered to have worldwide coverage.
Related Terms: insurance premium, liability insurance, workers’ compensation, auto insurance, homeowner’s insurance, health insurance.
References
- Insurance Services Office, Inc. “Business Auto Coverage Form”, Page 10.
- Insurance Information Institute. “Workers Compensation Insurance”.
- Insurance Information Institute. “Liability Insurance”.
- Geico. “Does My Car Insurance Cover Me In Canada And Mexico?”
- Insurance Information Institute. “What is covered by standard homeowners insurance?”
- Consumer Reports. “Will Your Health Insurance Cover You Overseas?”
