The Importance of Duty of Care for International Employers
Among the more difficult tasks corporate risk managers face is identifying possible threats to employees that engage in business travel and international assignments.
While most firms ostensibly recognize that they have a moral obligation to ensure the safety of employees working in foreign areas, some do not understand the scope of these responsibilities and are ill prepared to deal with the possible fallout of disaster scenarios.
This may seem like a straightforward issue that any qualified risk management team should be able to handle on its own, but it’s not. Implementing a comprehensive program to ensure appropriate worldwide coverages and services that address potential scenarios is a complicated, detailed process.
Putting together the right solution often requires a tremendous amount of input from risk management experts inclusive of experienced global brokers and insurers that work on behalf of a given company on a case-by-case basis.
Quite simply, there is no one-size-fits-all risk management solution to ensure all duty of care obligations are met around the world. What qualifies as reasonable coverage in one country or for one organization’s needs may be entirely inadequate in another instance.
Therefore, risk managers must go the extra mile to ensure their international workforce is fully protected. If they don’t, the company could face long, drawn-out lawsuits capable of inflicting tremendous financial and reputational damage. While there are obvious risk management protections, lawsuits can arise from a wide range of occurrences – from everyday accidents to complex global threats.
In fact, there are countless instances where organizations failed to implement adequate risk management policies to address their duty of care and keep employees safe with respect to the potential hazards of each location. The fallout of such failures is severe, not only for families who have experienced devastating loss, but also for companies forced to deal with the legal, financial and reputational consequences.
This may seem like a straightforward issue that any qualified risk management team should be able to handle on its own, but it’s not.
Therefore, the importance of comprehensive international risk management policies to address adequate duty of care responsibilities should be abundantly clear. And in order to implement the best solutions, it is essential to partner with the right insurer.
Working with an experienced carrier with a global network that can coordinate local policies around the world ensures flexible, cost-effective solutions that optimize coverage and service. Unfortunately, companies often develop patchwork strategies that rely on fragmented programs put together by unrelated insurance brokers and carriers, which can lead to inefficiencies and dangerous gaps in coverage.
Experienced global insurers utilize a mature network of providers to ensure service, regulatory and legal compliance, risk engineering, and expert claims handling. Further, companies with a seasoned network have local operations that rely on established strategic relationships with thoroughly vetted legal, security, medical and other providers. This in turn allows carriers to offer flexible solutions, optimize the response to damages and threats, keep claim expenses in line and policy costs competitive.
Having the right resources in place can mean the difference between an expensive payout and walking away from a questionable lawsuit or fraudulent claim.