But what about the risks?

Transcription

1 Doing business overseas can have its rewards. But what about the risks? Q: Are we covered for third party liability? A: Yes. See COMMERCIAL GENERAL LIABILITY Q: What if we have a car accident? A: We re covered. See COMMERCIAL AUTOMOBILE Click below for more information Companies who need this coverage Product Portfolio Commercial General Liability Commercial Automobile Liability Employers Responsibility International Medical and AD&D Commercial Property & Business Income Kidnap & Extortion Executive Assistance Network of Offices About ACE USA/ Financial Stability Q: What if we get sick overseas? A: We have emergency medical coverage. See INTERNATIONAL MEDICAL AND AD&D Q: What if the illness is really serious? A: We ll be evacuated. See EMPLOYERS RESPONSIBILITY Q: What if our laptops are stolen? A: We ll be reimbursed. See COMMERCIAL PROPERTY & BUSINESS INCOME Q: What if we re kidnapped? A: Expert security consultants will work to get us released. See KIDNAP & EXTORTION Q: And what if we re detained by the authorities? A: There s a number to call for emergency help. See EXECUTIVE ASSISTANCE Okay let s get going! Fact Sheets Claim Scenarios Applications Contact Us ACE USA International Advantage Take away the risk, and you can do anything.

2 ACE USA Companies who need this coverage ACE USA s International Advantage Policy is the ideal insurance program for U.S. organizations who: have employees who travel internationally have employees temporarily or permanently stationed in foreign countries participate in international exhibitions or trade fairs export products outside the U.S. have foreign licensees selling the company s products perform service or repair work abroad work on any military bases overseas sponsor trips, tours or study groups abroad have international operations or sales offices advertise or sell products or services on the World Wide Web Please take a few moments now to review our extensive PRODUCT PORTFOLIO. Take away the risk, and you can do anything.

3 Product Portfolio: an array of global coverages We offer a single, easy-to-read package that protects against the many financial and personal risks of doing business overseas. We can tailor a program to include some or all of the products listed below for qualified risks: COMMERCIAL GENERAL LIABILITY COMMERCIAL AUTOMOBILE LIABILITY EMPLOYERS RESPONSIBILITY INTERNATIONAL MEDICAL AND AD&D COMMERCIAL PROPERTY & BUSINESS INCOME KIDNAP & EXTORTION Other specialized coverage options: EDUCATIONAL INSTITUTIONS POLICY APPLICATION FORMS Take away the risk, and you can do anything.

4 Commercial General Liability Why Coverage is Needed Many U.S. companies count on domestic comprehensive GL policy for worldwide exposures. Domestic GL coverage applies only if lawsuits are brought within U.S. borders. No insurance safety net if taken to court in foreign country. Real World Claim Scenario: Bodily Injury Liability in Colombia U.S.-based contractor visits prospective client at construction site in Bogota. Contractor trips, causing chain of events ending with suspended beam crashing into group of Bogota firm s workers. Four employees are seriously injured, and bring suit in Colombian courts against U.S. firm. Foreign suit/foreign occurrence is not covered under contractor s U.S. GL policy. The ACE USA Solution: International Advantage policy covers defense costs and covers judgment against U.S. firm. MORE REAL WORLD CLAIM SCENARIOS GL COVERAGES, LIMITS & FEATURES POLICY APPLICATION FORMS

5 Commercial General Liability GL Coverages, Limits & Features Coverages Bodily Injury and Property Damage Liability, Employee Benefits Liability, Personal and Advertising Injury Liability, Medical Payments Limits $1 million each occurrence BI/PD & per claim for Employee Benefits No general aggregate $1 million aggregate for Products-Completed Operations $1 million aggregate for Personal & Advertising Injury $10,000 per person/$1 million each occurrence for Medical Payments Features Covers occurrences in any country except U.S.; Claims/suits may be brought anywhere Coverage also applies to U.S. occurrences, provided claim or suit is brought outside U.S. Coverage is on pay-on-behalf-of or to indemnify basis Premises damage is on all risks basis MORE REAL WORLD CLAIM SCENARIOS POLICY APPLICATION FORMS

6 Commercial General Liability More GL Claim Scenarios Products Liability in Germany U.S. metal goods manufacturer exports round metal disks made to specifications for German soda bottler. Buyer uses disks to make bottle caps, and one blows off glass bottle, blinding a child. Both bottler and U.S. manufacturer are sued in German court. Foreign suit/foreign occurrence is not covered under manufacturer s U.S. GL policy. Premises Damages in South Africa After 12-hour flight to South Africa, employee draws bath at rented corporate apartment and lies down to rest as tub fills. Employee dozes off and tub overflows, causing damage not only to apartment, but to three floors of building below. Claim results in substantial premises legal damages not covered under domestic GL policy, as it only provides coverage due to loss by fire. The ACE USA Solution: International Advantage policy insures the U.S. manufacturer against costly settlement. While case is dismissed, U.S. manufacturer s court costs are paid through policy. The ACE USA Solution: International Advantage policy covers against premises damage to the rented apartment resulting from all perils. Contractors Liability in Russia U.S. contractor is hired to install equipment at Russian customer s location. Contractor uses sub-contractor with low limits of insurance. Loss occurs and suit is brought against U.S contractor in Russia, a location not covered by U.S. GL policy. The ACE USA Solution: International Advantage policy covers losses occurring in Russia and majority of other countries. GL COVERAGES, LIMITS & FEATURES POLICY APPLICATION FORMS

7 Commercial Auto Why Coverage is Needed Companies doing business overseas find that local, admitted auto insurance often fails to provide U.S.-style coverage or limits. As result, most U.S. firms purchase difference in conditions (DIC) and excess coverage for damages and injuries to those using, owning, hiring or maintaining vehicles abroad. Real World Claim Scenario: U.S. Driver Not Covered Under Japanese Policy U.S.-based on-line brokerage firm hires American manager to open new branch office in Japan. Manager loans his leased vehicle to employee, another American. Employee, not covered by rental company s policy, causes accident with car carrying Japanese family, resulting in serious injuries and lawsuit against brokerage firm. The ACE USA Solution: The brokerage firm s International Advantage DIC coverage responds to lawsuit, provided vehicle is used for firm s business. AUTO COVERAGES, LIMITS & FEATURES POLICY APPLICATION FORMS

8 Commercial Auto Auto Coverages, Limits & Features Coverages Auto Bodily Injury, Property Damage Liability Limits $1 million each accident combined BI/PD single limit Features Covers accidents in any country except U.S.; Claims/suits may be brought anywhere Applies to any auto of insured, including owned, hired and non-owned vehicles Difference in coverage over any foreign auto insurance Hired Auto Physical Damage at limits of $1,000 per accident and $10,000 per policy Coverage is pay-on-behalf-of where permitted by law; otherwise on to indemnify basis POLICY APPLICATION FORMS

9 Employers Responsibility Why Coverage is Needed Accidents and illnesses occur when employees travel overseas on company business. Prudent employers carry voluntary compensation and related coverages that extend well beyond U.S. borders. Employers doing government work beyond U.S. borders need DEFENSE BASE ACT COVERAGE for military and non-military projects. Claim Scenarios Voluntary Compensation: Mexican National Traveling in South America U.S. distributor and newly-hired Mexican salesperson make joint business calls in Chile and Brazil. While in Brazil, salesperson trips and falls down flight of stairs. Mexican Social Security system provides no medical coverage for work injury sustained outside Mexico. The ACE USA Solution: International Advantage policy provides Mexican Work Injury benefits when injury occurs while employee is working. Employers Liability: Australian Employee Suing U.S.-based Employer Australian heavy equipment operator is hired by U.S. contractor for Middle East pipeline project. Australian is injured when equipment jams and collects comp benefits, but files multi-million dollar suit against employer for negligent equipment maintenance. The ACE USA Solution: International Advantage policy covers employer for defense against employee s suit. Repatriation: U.S. National Requiring Evacuation After Illness U.S. citizen on business trip to China suffers broken hip and sustains life-threatening injuries. To receive proper medical treatment, she is medically evacuated to Hong Kong. The ACE USA Solution: International Advantage policy pays repatriation costs under Executive Assistance service. EMPLOYERS RESPONSIBILITY COVERAGES, LIMITS & FEATURES MORE EMPLOYERS RESPONSIBILITY CLAIM SCENARIOS POLICY APPLICATION FORMS

10 Employers Responsibility Employers Responsibility Coverages, Limits & Features Coverages Employers Liability, Voluntary Compensation, Repatriation Limits $1 million Bodily Injury to employees for Accident or Endemic Disease for EL Statutory Workers Compensation benefits for Voluntary Compensation $250,000 Medical Evacuation/Repatriation Features Employers Liability applies to ALL employees; Coverage is for accidents or disease contracted outside U.S.; Claims/suits may be brought anywhere Voluntary Compensation available to U.S. & non-u.s. employees; Coverage fills gaps where standard Workers Compensation does not apply EXECUTIVE ASSISTANCE, a valuable array of emergency travel services MORE EMPLOYERS RESPONSIBILITY CLAIM SCENARIOS POLICY APPLICATION FORMS

11 Employers Responsibility More Employers Responsibility Claim Scenarios Voluntary Compensation: U.S.-based Executive Traveling in Asia Executive officer who is U.S. citizen travels to Vietnam to explore new business opportunity, and is involved in serious auto accident. Since he is not subject to U.S. workers compensation laws because of status as executive officer, domestic workers compensation policy affords him no coverage. Voluntary Compensation: U.S. National Stationed in Latin America While working in Latin America, U.S.-based chief engineer contracts Hepatitis B. Employee has no coverage for endemic disease under domestic workers compensation policy. The ACE USA Solution: International Advantage policy provides workers compensation on voluntary basis, if employer chooses to provide such benefits prior to accident. The ACE USA Solution: Provided Hepatitis B is contracted in Latin America as result of employment, voluntary compensation applies under International Advantage policy. EMPLOYERS RESPONSIBILITY COVERAGES, LIMITS & FEATURES POLICY APPLICATION FORMS

12 International Medical and AD&D Why Coverage is Needed Real World Claim Scenario: International employers must coordinate coverages to protect employees against financial loss from either occupational or nonoccupational injuries and illnesses. Many purchase optional medical and accidental death and dismemberment (AD&D) insurance that works in conjunction with domestic and foreign voluntary workers compensation. Result is true 24-hour protection for employee business travelers and dependents. U.S.-based Employee Traveling to Australia Employee of U.S.-based information technology firm travels to Australia to do audit. After suffering heart attack in hotel room, he is treated at local hospital, but required to pay bills by credit card. Back in U.S., he files claim with local HMO, only to find he is not covered for extra-territorial medical reimbursement. The ACE USA Solution: International Advantage policy covers expenses and/or outof-network charges if individual s plan does not, and guarantees payments to hospital. MEDICAL AND AD&D COVERAGES, LIMITS & FEATURES MORE MEDICAL AND AD&D CLAIM SCENARIOS POLICY APPLICATION FORMS

13 International Medical and AD&D Medical and AD&D Coverages, Limits & Features Coverages Accidental Death & Dismemberment, Medical Expense Limits AD&D for employees $100,000 or $250,000 are available AD&D for spouse $50,000; for child $25,000 Medical expense limits of $10,000 or $25,000 are available for employee, spouse or child Features Coverage available to employees and family members Covers personal side trips (up to two weeks) in conjunction with business travel MORE MEDICAL AND AD&D CLAIM SCENARIOS FACT SHEET WITH MORE DETAILS POLICY APPLICATION FORMS

14 International Medical and AD&D More Medical and AD&D Claim Scenarios Israeli National Traveling to Japan While visiting Japanese work site for his employer, a U.S.-based semi-conductor company, Israeli national slips in hotel bathtub, severely injuring back and spine. Worker is taken to Japanese hospital, but has no coverage under his home country s national health plan. British National Traveling to U.S. U.K.-based executive of U.S. firm travels to New York for international trade show, and is hospitalized for pulmonary embolism. Employee s individual medical plan does not extend coverage outside U.K. MEDICAL AND AD&D COVERAGES, LIMITS & FEATURES FACT SHEET WITH MORE DETAILS POLICY APPLICATION FORMS The ACE USA Solution: Because Israeli man s employer has International Advantage policy, ACE office in Japan makes payments directly to hospital. The ACE USA Solution: International Advantage policy pays all incurred expenses, less deductible.

15 Commercial Property & Business Income Why Coverage is Needed Doing business globally involves property exposures of all types and sizes from salesperson s samples to sprawling office complexes. Companies with operations in foreign markets need broad protection from insurer familiar with all policies and extensions required by local jurisdictions. Real World Claim Scenario: High Winds Strike Sales Office in France U.S.-based service company maintains sales office in France. During severe thunderstorm, building s windows are blown out and office equipment is damaged by rain. The ACE USA Solution: International Advantage policy pays for property damage at covered location (subject to applicable deductible, policy limits, and policy terms and conditions). PROPERTY COVERAGES, LIMITS & FEATURES MORE PROPERTY CLAIM SCENARIOS POLICY APPLICATION FORMS

16 Commercial Property & Business Income Property Coverages, Limits & Features Coverages Buildings, Personal Property, Personal Property in Transit, Personal Property on Exhibition, Sales Samples, Business Income, Cargo Limits Replacement Cost $1,000 standard deductible Features No co-insurance provision Built-in inflation guard FACT SHEET WITH MORE DETAILS MORE PROPERTY CLAIM SCENARIOS POLICY APPLICATION FORMS

17 Commercial Property & Business Income More Property Claim Scenarios Samples Stolen at Tokyo Conference U.S.-based employee travels to Tokyo for industry trade show. As salesman attends opening reception, thief enters hotel room and steals samples worth $5,000. The ACE USA Solution: Because salesman s employer has International Advantage Policy, company is reimbursed for loss of samples (subject to applicable deductible, policy limits, and policy terms and conditions). Europe-bound Cargo Destroyed in Heavy Seas U.S.-based manufacturer ships approximately $1 million in goods to Europe annually. Cargo ship carrying $25,000 shipment for company is crippled by high seas and takes on water; all merchandise aboard is destroyed. The ACE USA Solution: International Advantage policy pays for all cargo losses in course of shipment (subject to applicable deductible, policy limits, and policy terms and conditions). FACT SHEET WITH MORE DETAILS POLICY APPLICATION FORMS

18 Kidnap & Extortion Why Coverage is Needed As worldwide commerce grows, so does risk of kidnapping for corporate executives, key employees, wealthy citizens, and their families. Executives now kidnapped at rate exceeding 1,000 per year. High-profile multinational firms are prime targets for extortion attempts by opportunistic criminals. Real World Claim Scenarios: U.S.-based Employee Abducted in Panama Executive of U.S.-based retailer travels to Panama for two-week business trip. On way from airport to hotel by taxi, she is abducted and held for $500,000 ransom. The ACE USA Solution: International Advantage Policy covers ransom money and related expenses resulting directly from kidnapping incident. ACE USA, in partnership with Control Risks Group, provides expert security consultant to evaluate situation, advise on possible options, and coordinate crisis management. Spanish Terrorists Seek $1 Million Payment from American Firm U.S.-based manufacturer generates 25 percent of revenues from products sold in Europe. Terrorist organization in Spain contacts New York headquarters and threatens to contaminate goods in European supply chain unless it receives $1 million. The ACE USA Solution: International Advantage policy reimburses extortion money paid by insured directly following incident. ACE USA, in partnership with Control Risks Group, provides priority crisis response and expert advice to help manage and resolve incident as quickly as possible. KIDNAP & EXTORTION COVERAGES, LIMITS & FEATURES POLICY APPLICATION FORMS

19 Kidnap & Extortion Kidnap & Extortion Coverages, Limits & Features Coverages Kidnapping, Alleged Kidnapping, Bodily Injury Extortion, Property Extortion, Product Adulteration Extortion, Proprietary Information Extortion Limits Options from $250,000 to $2.5 million Features Worldwide coverage territory Prevention and response efforts coordinated by Control Risks Group: Provides businesses, governments, and individuals with 24-hour professional security and crisis management support Founded in 1975, currently works with more than 3,000 clients in over 130 countries World s leading provider of kidnap crisis response services Employs multidisciplinary approach, offering priority access to consultants & analysts from wide range of professional backgrounds POLICY APPLICATION FORMS

20 Executive Assistance Services Why This Service is Needed Employees who travel abroad face more potential problems than those traveling domestically. Overseas travelers routinely encounter uncertain political and economic climates, difficult language barriers, and unusual local customs and laws. When companies are prepared to deal with such factors, employees focus more energy on achieving business objectives. The Advantage to Traveling Employees Executive Assistance is a package of services available with ACE USA Employers Responsibility coverage. Traveling employees have 24- hour telephone access to the following services: Medical Assistance Gives employees access to qualified, English-speaking physicians, verifies benefits, and coordinates claims anywhere around the globe. Travel & Personal Assistance Provides embassy and consular contacts worldwide, and assistance in replacing lost documents. Assistance Connects employees with local attorneys familiar with court systems in foreign countries, as well as local language translation services. Security Assistance Offers travelers pre-trip security briefings and up-to-the-minute reports on political and cultural trouble spots. FACT SHEET WITH MORE DETAILS

21 Global Network of Offices International Advantage features: An extensive network of operations (see map) with strong business roots in the nearly 50 countries and markets we serve. Global offices staffed primarily by local nationals familiar with local laws and customs. A history dating back nearly 80 years in many countries around the world. A strong platform for growth in emerging international business centers, including Latin America and Southeast Asia.

22 About ACE USA ACE USA: Is the U.S.-based operating division of the ACE Group of Companies. Offers property and casualty products and services to a broad range of local and multinational businesses. Makes International Advantage and other ACE USA coverage and service programs available through leading insurance agents and brokers throughout the U.S. The ACE Group of Companies: Was formed in 1985 by major international insurers to provide excess liability coverage, and quickly became a principal player on the world insurance scene. Currently has companies operating in all major markets and many emerging nations. Is led by ACE Limited (NYSE:ACE). Financial Stability Another good reason for selecting ACE USA: the International Advantage package policy is underwritten by ACE American Insurance Company, rated A (Excellent) by A.M. Best.

23 Fact Sheets Click on any of the links below for additional information on coverages or services offered by ACE USA International Advantage. A separate fact sheet contains REAL WORLD CLAIM SCENARIOS for each of our products. Coverages INTERNATIONAL MEDICAL INSURANCE BENEFITS AND AD&D COVERAGE INTERNATIONAL PROPERTY COVERAGE DEFENSE BASE ACT COVERAGE Special Coverage Programs EDUCATIONAL INSTITUTIONS WITH STUDENTS WHO STUDY ABROAD Services EXECUTIVE ASSISTANCE INTERNATIONAL CLAIM SERVICES

24 International Advantage Real World Claim Scenarios: Why It Pays to Have Protection As the following scenarios show, it pays for businesses operating globally to purchase overseas liability insurance and sometimes optional medical and AD&D coverage. Prudent organizations also seek ample protection for their international property and kidnap & extortion exposures. General Liability Many U.S. companies rely on their domestic comprehensive general liability policy for worldwide exposures. Such firms are covered as long as lawsuits are brought within U.S. borders, but they re without an insurance safety net if taken to court in a foreign country. Bodily Injury Liability in Colombia A U.S.-based contractor visits a prospective client at a construction site in Bogota. The contractor trips, causing a chain of events ending with a suspended beam crashing into a group of the Bogota firm s workers. Four employees are seriously injured, and bring suit in Colombian courts against the U.S. firm. The foreign suit/foreign occurrence is not covered under the contractor s U.S. general liability policy. Products Liability in Germany A U.S. metal goods manufacturer exports round metal disks made to specifications for a German soda bottler. The bottler uses the disks to make bottle caps. A bottle cap blows off a glass bottle, blinding a child. Both the bottler and the U.S. manufacturer are sued in German court. The foreign suit/foreign occurrence is not covered under the manufacturer s U.S. GL policy. Solution: An International Advantage policy from ACE USA provides coverage for defense costs and covers the judgment against the U.S. firm. Solution: The International Advantage policy insures the U.S. manufacturer against a costly settlement. While the case is dismissed, the U.S. manufacturer s court costs are paid through the policy. ACE USA 1 Beaver Valley Road 1 West Wilmington, DE main fax Premises Damages in South Africa After a 12-hour flight to South Africa, an employee draws a bath at a rented corporate apartment and lies down to rest as the tub fills. The employee falls asleep and the tub overflows, causing damage not only to the apartment, but to three floors of the building below. The claim results in substantial premises legal damages not covered under the domestic general liability policy, as it only provides coverage due to loss by fire. Contractors Liability in Russia A U.S. contractor is hired to install equipment at a Russian customer s location. The contractor uses a sub-contractor with low limits of insurance. A loss occurs and a suit is brought against the U.S contractor in Russia, a location not covered by his U.S. general liability policy. Solution: The International Advantage policy covers against premises damage to the rented apartment resulting from all perils. Solution: The International Advantage policy covers losses occurring in Russia and the majority of other countries around the world.

25 Real World Claim Scenarios: Why It Pays to Have Protection (continued) Automobile Liability Companies doing business overseas find that local, admitted automobile insurance often fails to provide the coverage or limits they re accustomed to having in the U.S. That s why most U.S. firms purchase difference in conditions (DIC) and excess coverage for damages and injuries sustained while using, owning, hiring or maintaining vehicles abroad. U.S. Motorist Driving in Japan A U.S.-based on-line brokerage firm hires an American manager to open a new branch office in Japan. The manager loans his leased vehicle to an employee, another American. The employee, not covered by the rental company s policy, causes an accident with a vehicle carrying a Japanese family, resulting in serious injuries and a lawsuit against the broker. Solution: The brokerage firm s International Advantage DIC coverage responds to the lawsuit provided the vehicle was used in the firm s business. Employers Responsibility Accidents and illnesses occur when employees travel overseas on company business, and prudent employers carry voluntary compensation and related coverages that extend well beyond U.S. borders. Foreign Voluntary Compensation U.S.-based Executive Traveling in Asia An executive officer, a U.S. citizen, travels to Vietnam to explore a new business opportunity. While away from home, he s involved in a serious auto accident. Since he was not subject to U.S. workers compensation laws because of his status as an executive officer, his domestic workers compensation policy affords him no coverage. Mexican National Traveling in South America A U.S. distributor hires a salesperson in Mexico. The distributor flies to Mexico City to meet with the salesperson and make joint business calls in Mexico, Brazil and Chile. While in Brazil, the Mexican salesperson trips and falls down a flight of stairs. There is no coverage for this employee under the Mexican Social Security system, which doesn t provide medical coverage for work injury when the employee is outside Mexico. Solution: International Advantage policy provides comp benefits on a voluntary basis if his employer chooses to provide these benefits before the accident. Solution: The International Advantage policy provides Mexican Work Injury benefits to the salesperson if the injury was in the course of employment. U.S. National Stationed in Latin America While working in Latin America, a U.S.-based chief engineer contacts Hepatitis B. He has no coverage for endemic disease under his home state domestic workers compensation policy. Repatriation U.S. National Requiring Evacuation after an Illness A U.S. citizen on a business trip to China suffers a broken hip and sustains other life-threatening injuries. To receive proper medical treatment, she is medically evacuated to Hong Kong. The total cost of repatriation is $80,000. Solution: Provided the Hepatitis B is contracted in Latin America as a result of employment, Voluntary Compensation applies. Solution: The International Advantage policy pays repatriation costs under the Executive Assistance Service. Employers Liability Australian Employee Suing U.S.-based Employer An Australian heavy equipment operator is hired by a U.S. contractor for a Middle East pipeline project. The Australian is injured when the equipment malfunctions and collects workers compensation benefits, but files a multi-million dollar suit against his employer for negligent equipment maintenance. Solution: The International Advantage policy covers the employer for defending against the employee s suit.

26 Real World Claim Scenarios: Why It Pays to Have Protection (continued) Medical and AD&D (Coordinating Coverages) International employers must often coordinate coverages to protect their employees against financial loss from either occupational or non-occupational injuries and illnesses. ACE USA International Advantage offers optional medical insurance benefits and accidental death and dismemberment (AD&D) insurance that in conjunction with domestic and foreign Voluntary Workers Compensation provides true 24-hour protection for employee business travelers and their dependents. U.S.-based Employee Traveling to Australia An employee of a U.S.-based information technology firm travels to Australia to do an audit. After suffering a heart attack in his hotel room, he is treated at a local hospital, but required to pay his bills by credit card. Back in the U.S., he files a claim with his local HMO, only to find he is not covered for extra-territorial medical reimbursement. Solution: An International Advantage policy not only covers these expenses and/or outof-network charges if the individual s plan does not, but ACE USA also guarantees payments to the hospital. Israeli National Traveling to Japan While visiting a Japanese work site for his employer, a U.S.-based semiconductor company, an Israeli national slips in his hotel bathtub, severely injuring his back and spine. He is taken to a Japanese hospital, but has no coverage under his home country s national health plan. Solution: Because the Israeli man s employer has an International Advantage policy, the ACE office in Japan makes payments directly to the hospital. British National Traveling to U.S. A U.K.-based employee of a U.S. firm travels to New York for an international trade show, and is hospitalized for a pulmonary embolism. His individual medical plan does not extend coverage outside the U.K. International Property Doing business overseas presents organizations with a wide range of property exposures from salesperson s samples to a 40-story office building. U.S. companies find that their domestic policies rarely provide adequate coverage. Solution: The International Advantage policy pays all incurred expenses, less the deductible. High Winds Strike Sales Office in France A U.S.-based telecom company maintains a sales office with 60 employees in France. During a severe thunderstorm, the building s windows are blown out and torrential rain causes thousands of dollars in damage to office equipment. Solution: International Advantage policy pays for property damage at covered location (subject to applicable deductible, policy limits, and policy terms and conditions). Samples Stolen at Tokyo Conference An employee of a U.S.-based pharmaceuticals company travels to Tokyo for an industry trade show. As the salesman attends the opening reception, a thief enters his hotel room and steals samples worth $5,000. Solution: Because the salesman s employer has International Advantage policy, the company is reimbursed for the loss of the samples (subject to applicable deductible, policy limits, and policy terms and conditions). Europe-bound Cargo Destroyed in Heavy Seas A U.S.-based manufacturer ships approximately $1 million in goods to Europe annually. A cargo ship carrying a $25,000 shipment for the company is crippled by high seas and takes on water, causing all merchandise on board to be destroyed. Solution: The International Advantage policy pays for all cargo losses in the course of a shipment (subject to applicable deductible, policy limits, and policy terms and conditions).

27 Overseas Liability Claim Scenarios: Why It Pays to Have Protection (continued) Kidnap & Extortion As global commerce expands, so does the risk of kidnapping for corporate executives, key employees, wealthy citizens and their families. In fact, executives alone are kidnapped at a rate of more than 1,000 per year. At the same time, we see a growing number of incidents where extortionists threaten product contamination or other ways of impacting a company s ability to do business. U.S.-based Employee Abducted in Panama A top executive of U.S.-based retailer travels to Panama for a two-week business trip. On the way from the airport to the hotel by taxi, she is abducted and held for $500,000 ransom. Solution: International Advantage policy covers the ransom money and related expenses resulting directly from the kidnapping incident. ACE USA, in partnership with Control Risks Group, provides an expert security consultant to evaluate the situation, advise on the possible options, and coordinate all crisis management efforts. Spanish Terrorists Seek $1 Million Payment from American Firm A U.S.-based manufacturer generates 25 percent of its revenues from products sold in Europe. A terrorist organization in Spain contacts the company s New York headquarters and threatens to contaminate goods in its European supply chain unless the extortionists receive $1 million. Solution: The International Advantage policy reimburses the extortion money paid by the insured directly following incident. ACE USA, in partnership with Control Risks Group, provides priority crisis response and expert advice to help manage and resolve the incident as quickly as possible. International Advantage The Benefits Extends Coverage Overseas Brings coverage up to U.S. standards in overseas jurisdictions. Local Expertise Offices staffed by professionals thoroughly familiar with local languages, pertinent regulations and customs. Focuses Exclusively on International Business Handling the overseas exposures of U.S.-based companies is our only business at ACE USA U.S. International Division. When your workplace is the world, rely on an International Advantage policy from ACE USA for all the protection a business might need.

28 International Advantage International Medical Insurance Benefits and AD&D Coverage When employees journey beyond their country s borders on business, they re exposed to gaps in coverage that can be costly to them and their employers. The International Advantage policy offers optional medical insurance benefits and accidental death and dismemberment (AD&D) insurance that in conjunction with domestic and foreign voluntary workers compensation provides 24 hour protection for employee business travelers and their dependents. Companies Who Need This Coverage U.S.-based Companies Whose Employees Travel Outside the United States Typical Coverages for Qualified Risks I. Medical Insurance Benefits Risks Insured Employee illnesses and injuries when domestic and foreign Voluntary Workers Compensation excludes payment (See Benefits Schedule on back of this page) Limits Limits of $10,000, $25,000 or greater are available for both employee and spousal/ dependent child coverage Features Offers first dollar coverage for spouse and children traveling with employee Coverage extends to personal trips (up to two weeks) taken in conjunction with business travel Available only in conjunction with foreign voluntary Workers Compensation and AD&D Excluded from coverage: normal pregnancy, routine physical exams/dental care, eyeglasses, hearing aids, nervous or mental disorders II. AD&D Risks Insured Injuries that directly result in death or loss of eye(s) and/or limb(s), speech and/or hearing up to 12 months after an accident (See Benefits Schedule on next page) ACE USA 1 Beaver Valley Road 1 West Wilmington, DE main fax Limits Principal sum coverage of $100,000 or $250,000 available for employees Optional dependent coverages are $50,000 principal sum for spouses and $25,000 principal sum for children Features 24 hour door-to-door coverage from time employees and covered family members leave until they return Coverage extends to personal trips (up to two weeks) taken in conjunction with business travel (continued on next page)

29 International Medical Insurance Benefits and AD&D Coverage (continued) Benefits Schedules Medical Pays 100% of reasonable and customary in-hospital and outpatient charges ($50 deductible per occurrence) Provides up to $500 coverage per calendar year for pre-existing conditions Includes $1,000 coverage per occurrence for dental expenses resulting from an accident or injury Pays $250 per occurrence for local ambulance service AD&D Pays 100% of principal sum for loss of life Pays 100% of principal sum for loss of combination of any two eye(s), hand(s) or foot/feet Pays 50% of principal sum for loss of one eye, hand or foot Pays 100% of principal sum for loss of speech and hearing Pays 50% of principal sum for loss of speech or hearing International Advantage The Benefits Helps Companies Stay Financially Strong By insuring executives and other key employees, employers protect their financial strength. Gives Business Travelers Greater Peace of Mind Frees employees to concentrate on company business objectives while traveling abroad. Focuses Exclusively on International Business Handling the overseas exposures of U.S.-based companies is our only business at ACE USA U.S. International Division. Provides Underwriting Stability International Advantage employee benefits and AD&D coverages are underwritten by ACE American Insurance Company, rated A (Excellent) by A.M. Best. When your workplace is the world, rely on an International Advantage policy from ACE USA for all the protection a business might need.

30 International Advantage International Property Coverage The International Advantage Property program packages broad protection for all sizes of property exposures. From salesperson s samples to fixed assets, we can provide organizations with all the coverages and extensions needed for doing business outside the U.S. Companies Who Need This Coverage U.S.-based Companies Doing Business Outside the United States Standard Coverages for Qualified Risks I. Property Coverages Available Business and Personal Property at Property on Exhibit Named & Un-named Locations Cargo Personal Property in Transit Business Income & Extra Expense Salesperson s Samples Flexible Limits Blanket Coverage Available Comprehensive Coverage No Coinsurance Replacement Costs Extensions of Property Coverage Available General $100,000 Newly Acquired Building $100,000 Rents $100,000 Personal Property at Any $100,000 Leasehold Interest Newly Acquired Location $25,000 Valuable Papers & Records $100,000 EDP & Special Objects Research $100,000 EDP & Special Objects $25,000 Accounts Receivable Expediting Expense $25,000 Personal Property in Transit $100,000 Additional Extra Expense Money & Securities $5,000 On the Premises $25,000 Brand and Label $5,000 Off the Premises $25,000 Consequential Damage Fine Arts $10,000 Any Covered Location ACE USA 1 Beaver Valley Road 1 West Wilmington, DE main fax Deferred Payments $25,000 Any Covered Location $25,000 Pollution Clean-up $25,000 Installation at Any Job Site $25,000 Fire Department Service Charge $25,000 Inventory or Appraisals $10,000 Any One Occurrence $100,000 Tenants & Neighbors Liability Outdoor Property $25,000 Debris Removal Personal Effects $1,000 Per Person $25,000 Aggregate Limit $5,000 Per Occurrence Flood & Earthquake $100,000 Income Tax Equalization 12% Inflation Guard Options Available Higher limits available for an additional premium The limits for extensions of Property Coverage apply in addition to the limits shown for Named Locations. When limits for Un-named Locations apply to a loss, the limits for Extensions of Property Coverage are included in the limit which applies to Un-named Locations. (continued on next page)

31 International Property Coverage (continued) The Coverages (continued) II. Extensions of Business Income and Extra Expense Coverage Available Contingent Business Interruption and Extra Expense coverage applies to Owned, Contingent (Non-owned) Locations, and Interdependent (Owned) Locations. With the purchase of Business Income and Extra Expense coverage, the following coverage extensions will be automatically included: $100,000 At Each Newly $100,000 Public Utilities Acquired Location $5,000 Auditors Fees $100,000 Any Contingent Business Location $25,000 While in Transit $25,000 Special Objects Maximum Period of Indemnity (12 Months) Options Available Monthly Limit of Indemnity Reporting Adjustment Extended Period of Indemnity Maximum Period of Indemnity III. Broadened Perils Comprehensive Perils, Including All Risk Coverage Theft (Except Furs, Gems, Precious Metals) Building Ordinance Coverage Collapse (Except Settling, Cracking, Building Glass Breakage Shrinking and Expansions) Water Damage (Except Flood) Preferred Classes of Business In general, all except: High Hazard Chemicals, Plastics, Rubber, Textiles and Woodworking Catastrophe Exposures Such as Windstorm in Guam, Caribbean Islands, and the Philippines Mexico Maquilodora Risks DIC-only Coverage Contingent Business Interruption Where Limits Exceed $500,000 per Location Deductible $1,000 per Occurrence Minimum Deductible $25,000 Minimum Flood and Earthquake Deductible, When Additional Limits Purchased Global Insurance Services Claim Handling Through the ACE Group s worldwide network of claim offices, ACE USA responds quickly and effectively to minimize losses, pay damages and get companies back in business. Risk Control & Prevention The expertise of ACE engineers makes our worldwide risk control and prevention services among the most complete in the industry. International Advantage The Benefits Focuses Exclusively on International Business Handling the overseas exposures of U.S.-based companies is our only business at ACE USA U.S. International Division. Provides Underwriting Stability International Advantage property coverages are underwritten by ACE American Insurance Company, rated A (Excellent) by A.M. Best. When your workplace is the world, rely on an International Advantage policy from ACE USA for all the protection a business might need.

32 International Advantage Defense Base Act Coverage When U.S. employers contract with our federal government to complete projects beyond our country s borders, a specific workers compensation law travels with them. The Defense Base Act (DBA) is designed to protect employees who work as civilians outside the U.S. for our nation or any other on both military and non-military projects. DBA coverage extends benefits payable under the U.S. Longshore and Harborworkers Compensation Act, and is available through the International Advantage policy. Companies Who Need This Coverage U.S.-based Employers Providing DBA required Coverage for their Employees Working on U.S. Government Contracts in Foreign Countries ACE USA 1 Beaver Valley Road 1 West Wilmington, DE Coverages for Qualified Risks Risks Insured For specific workers compensation and employers liability risks insured, refer to U.S. Code Annotated Section 1651 et seq. A copy is available from any ACE USA U.S. International representative. Employment Categories Specifying DBA Coverage 1) At any military, air or naval base. 2) Upon any lands occupied or used by the U.S. for military purposes in any Territory or possession outside the continental U.S. 3) Upon any public work in any Territory or possession outside the continental U.S. if under contract with the United States. 4) Under a contract entered into with the U.S. (or representative agency), if the contract is to be performed outside the U.S. and not within the area described above in (1), (2), and (3), for the purpose of performing public work, and such contract will require DBA insurance. This insurance will be secured prior to and be maintained during the term of the contract. 5) Under a contract approved and financed by the U.S. or any executive department or agency, if the contract is to be performed outside the U.S. under the Mutual Security Act of ) Outside the continental U.S. by an American employer providing welfare or similar services for the benefit of the Armed Forces pursuant to appropriate authorization by the Secretary of Defense. Related Services As a Department of Labor-approved carrier, ACE USA has the service and claim network in place to provide your clients with the necessary assistance while working abroad or upon their return to the U.S. (continued on next page) main fax

33 Defense Base Act Coverage (continued) International Advantage The Benefits Brings Extensive DBA Experience ACE USA is an insurer of employers providing DBA-required coverage Provides Underwriting Stability DBA-required standard workers compensation and employers liability insurance is underwritten by ACE American Insurance Company, rated A (Excellent) by A.M. Best. Focuses Exclusively on International Business Handling the overseas exposures of U.S.-based companies is our only business at ACE USA U.S. International Division. When your workplace is the world, rely on an International Advantage policy from ACE USA to protect your interests in so many ways.

34 International Advantage Educational Institutions with Students Who Study Abroad With more than 100,000 Americans studying abroad every year, colleges and universities face a host of exposures unique to foreign travel. In such cases, international liability coverage is a must for the institution, and the most prudent schools extend coverage to include students and others, as well. What s more, with young travelers suddenly a world away from home, who can blame them, or their parents, for wondering where they might turn in case of emergency? Address the risks and uncertainties of overseas travel with the International Advantage policy for educational institutions. Organizations Who Need This Coverage Educational Institutions who: Sponsor study abroad or affiliated programs, tours, or trips for students, alumni or others. Have employees (including faculty members) stationed overseas, or who travel to foreign countries for any job-related reason. Have employees who own, lease, rent, hire, or borrow automobiles overseas. Basic Coverage Insures the Institution Against These Exposures (as Part of Comprehensive Package Policy): General Liability Contingent Automobile Liability Employers Responsibility Foreign Voluntary Compensation Employers Liability Medical Evacuation/Repatriation (Policy Limit: $250,000) Basic Coverage May Be Extended to Include: Employees, Students, Chaperones Other Participants in Tours, Trips or Similar Activities ACE USA 1 Beaver Valley Road 1 West Wilmington, DE main fax Optional Coverages (for Students, Chaperones) The following coverages are also available through this policy: Accident and Sickness Medical Expense* Accidental Death & Dismemberment (AD&D) Medical Evacuation/Repatriation (Policy Limit: $50,000 per covered person) including Executive Assistance Services Product Features * Coverage is on a secondary basis. For primary accident & health coverage, please contact your International Advantage representative. Accident and Sickness Medical Expense Policy Limits: $10,000 $25,000 Pays 100% of reasonable and customary in-hospital and outpatient charges ($50 deductible per occurrence) (continued on next page)

35 Educational Institutions with Students Who Study Abroad (continued) Product Features (continued) Provides up to $500 coverage per calendar year for pre-existing conditions Includes $1,000 coverage per occurrence for dental expenses resulting from an accident or injury Pays $250 per occurrence for ambulance service AD&D Policy Limits: $10,000 $25,000 $50,000 Compensates for injuries directly resulting in death or loss of eye(s) and/or limb(s), speech and/or hearing up to 12 months after an accident Features Applying to Both Emergency Medical and AD&D Provides 24-hour, door-to-door coverage, from the time students leave until they return For those studying abroad, extends coverage for personal trips (of up to two weeks) Executive Assistance A Service That s Always On Call Quality insurance is just one reason for choosing International Advantage. Another is Executive Assistance, a package of travel-related services coordinated through two of the world s leading providers Worldwide Assistance and Control Risks Group. When basic coverage is extended to include traveling students, employees, chaperones and others, Executive Assistance provides these individuals with 24-hour telephone access to the following services: Medical Assistance Gives students and other travelers access to qualified, English-speaking physicians, verifies benefits and coordinates claims anywhere in the world. Travel and Personal Assistance Provides embassy and consular contacts worldwide, and assistance in replacing lost documents. Assistance Connects travelers with local attorneys familiar with court systems in foreign countries, as well as local language translation services. Security Assistance Offers travelers pre-trip security briefings and updated reports on the security situation in cities worldwide. Please review the policy for a complete description of these services. International Advantage The Benefits Helps Institutions Stay Financially Strong Colleges and universities protect their financial strength by insuring students, employees and others overseas. Focuses Exclusively on International Business Handling the overseas exposures of U.S.-based organizations is our only business at ACE USA U.S. International Division. When your workplace is the world, rely on an International Advantage policy from ACE USA for all the protection an organization might need.

36 International Advantage Executive Assistance Services When employees travel abroad, a lot can go wrong. Terrorist bombings and hijackings grab the headlines. But what about when a business traveler: has a car accident and the doctor doesn t speak English? is robbed of a wallet or purse? gets arrested and jailed for a seemingly minor infraction? These incidents can take on huge proportions when they happen far away from home. That s why traveling employees appreciate Executive Assistance, the 24-hour service available with Employers Responsibility coverage under an International Advantage policy. Companies Who Need This Service U.S.-based Companies Whose Employees Travel to Other Countries on Business The Service What It Is A package of emergency medical, personal, travel, and security assistance services coordinated through two of the world s leading providers Worldwide Assistance and Control Risks Group ACE USA 1 Beaver Valley Road 1 West Wilmington, DE main fax For Whom Its Designed Employees of covered multinational organizations living outside their home country, as well as U.S. expatriate employees, and employees engaged in temporary travel, including their accompanying spouse, child(ren) or other companion(s) The Four Components of Executive Assistance I. Medical Assistance Emergency Medical Evacuation When adequate medical facilities are not available locally Repatriation To country of which employee is resident/citizen, when medically necessary Hospital Admission Deposit USD $10,000 Medical Monitoring Including regular communication to person designated by employee Dispatch of Doctor or Specialist When employee s condition cannot be adequately assessed locally Please review your policy for a complete description of each of these services. II. Personal Assistance Pre-Trip Medical Referral Information To multi-lingual doctors and/or addresses and phone numbers for hospitals Emergency Medication Arrangements for transportation Embassy and Consular Information Lost Document Assistance For replacing important documents such as passports and credit cards (continued on next page)