Business insurance for doing international business

[silverfirefly]

I've been doing some research into business insurance for freelancing. So far I've found insurers will refuse to insure me for doing business with American clients. One of them said they could cover me, but the excess fee for a claim was in the region of £5k which I wouldn't be able to afford.

I don't want to shut out US clients because of a simple issue with insurance. I know a lot of American and Canadian business folks who I would like to work with.

I've heard of other freelancers and consultants in the UK who work with anyone in the world, including US-based businesses, and I'm wondering if they're also expected to pay high excess fees if they're sued, or is there something I'm missing here?

 

[Socio South West]

I work with a company whose insurers have a similar stance to yours: They either decline enquiries from North America, or suggest that these customers buy through UK based third parties in whose name all the invoicing is done

 

[silverfirefly]

these customers buy through UK based third parties in whose name all the invoicing is done

Any examples of these third parties? I plan to do my own invoicing through FreeAgent.

 

[Socio South West]

Any examples of these third parties? I plan to do my own invoicing through FreeAgent.

These are usually friends/family or other business associates in the UK/EEC that the purchaser is already dealing with.

 

[Paul Baldwin]

Hi,
If you require cover for US jurisdiction then the £5,000 excess seems about right. If your contracts are made under UK law and it is simply a case of you needing a policy with worldwide territorial limits but UK jurisdiction then we may be able to offer you an alternative

 

[Ren Stock]

The main issue with getting insured to do business in America is that it is such a litigious country and the majority of costs involved with a claim are to do with legal fees.
This is why the insurers will try to protect themselves with a higher excess.