Toy Companies Need to Protect Foreign Interests Even as Economy Recovers

At the end of July, the Federal Reserve reported that the U.S. economy was beginning to stabilize. Despite the recovering economy, American-based toy manufacturers need to be aware that their overseas operations are still subject to a host of international risks that can put their quarterly earnings in jeopardy.

Foreign general liability coverage is a strategic way for multinational companies to insure their overseas interests. Toy manufacturers can select from nine different coverages in order to ensure that their insurance program is tailored to meet a variety of international risks, whether they are related to importing/exporting, corporate travel or manufacturing.

Available coverages include:

• Foreign Commercial General Liability
• Foreign Commercial Auto Liability
• Foreign Voluntary Workers’ Compensation/ Employer’s Liability
• Foreign Property – Real and Personal Property, Business Interruption (BI), Property at Exhibition/In Transit
• Marine Cargo and War Risk
• Foreign (location) Comprehensive Crime
• Kidnap and Ransom/ Extortion
• Political Risk
• Foreign Travel Accident and Emergency Medical Expense

“It is important to remember that crisis events can happen anywhere in the world – and because of their unexpected nature, multinational toy companies are at an even higher risk,” said Benjamin Thrush, Vice President of Business Development at HUB International Northeast. “These exposures include reputational damage, loss of valued customers and vendors, revenue decline and a decrease in public confidence.” Thrush stressed the importance of working with an insurance broker that can combine several foreign commercial insurance products into an international insurance portfolio.

TIA members who have questions about foreign general liability coverage, or who would like a free analysis of their current policy, may contact Mr. Thrush at 1-800-706-3023. Additional information on HUB's business insurance offerings to the toy industry is available online at the newly updated www.hub-tia.com.