Stranger in a Strange Land

This article also appeared in Interleges.

Four steps to maximize insurance coverage for non-U.S. businesses with U.S. operations that may be subject to long term liabilities.

If you are general counsel, a risk manager, or any other upper-level executive for a U.S. company with a non-U.S. corporate parent, you understand all too well that the tort and liability insurance system in the United States often makes non-U.S. business owners feel like strangers in a strange land.

Non-U.S. corporations that have U.S. operations through subsidiaries eventually will face the U.S. tort system. Claims for asbestos, environmental harm, lead exposure, and many other long term exposure or “toxic tort” situations all should be covered by insurance. Described below are four basic steps for maximizing insurance protection when faced with U.S.-based liabilities.