Insurance in the United States as a Belgian company

The American market beckons. For many Belgian companies, the step to the US is a logical growth ambition — whether it concerns export, a distribution agreement with a local partner, or the launch of their own establishment. But anyone who does business in America enters a legal and insurance landscape that is fundamentally different from everything you are used to in Europe.

In the US, one basic rule applies that you must never forget: anyone can sue anyone, for almost anything, with claims that are astronomical by European standards.

Anyone who is not correctly insured in America runs a risk that can jeopardise the survival of your entire company.

Are you considering taking such a step with your company too?
 

Then it is good to be prepared for “The American way of doing Business”.

Why is the American insurance market so different?

The US is not a federally uniform insurance country. Each state has its own legislation, its own mandatory insurances and its own minimum amounts.

What applies in Texas does not automatically apply in California or New York.

This makes it particularly complex for Belgian companies to put together the right policies without local guidance.
 

Moreover, the US is a so-called “Non Admitted country”: insurance for American risks must be taken out locally with an insurer recognised by the US government.

A Belgian or European policy that covers your activities in the US is, in most cases, simply not recognised. Anyone who ignores this is de facto uninsured — with all the consequences that entails.

The main pitfalls for Belgian companies in the US

The most common mistake is to assume that the existing Belgian liability insurance also provides coverage for activities in the US. In most cases this is explicitly excluded, or a territorial restriction applies that leaves the US out of consideration.

You would rather not discover that at the moment a claim comes in.
 

A second common pitfall is underestimating the claim amounts.
In the US, claims of several million dollars for product liability or professional errors are not an exception. The insured amounts on a European policy are not always geared to that.
 

A third problem arises with American business partners and distributors.
They generally require that you, as a Belgian company, can demonstrate that you have locally recognised insurance with specific minimum amounts and clauses.

Without those documents, a collaboration often does not get off the ground.

Which insurances do you need in the US?

The precise composition of your insurance package depends on your activities, your sector and the states where you are active.

Some insurances, however, are indispensable for virtually every Belgian company active in the USA.

General Liability Insurance is the American equivalent of business liability insurance and absolutely mandatory. It covers bodily injury and material damage to third parties as a result of your activities or products. American partners and principals require this certificate as standard.
 

For companies that sell products on the American market, a separate Product Liability Insurance is necessary.

Claims in product liability cases in the US can be enormous, and as an importer or distributor you too can be held liable.

Workers’ Compensation is legally mandatory in most American states for companies with staff. It covers occupational accidents and occupational diseases of your American employees and cannot be replaced by a Belgian employer’s liability policy.
 

Commercial Auto Insurance is mandatory for every vehicle used for business purposes on American roads — Also be careful with rented cars!!
 

For companies that provide professional services to American clients, Professional Liability Insurance is strongly recommended. It protects you against claims for errors, negligence or non-compliance with contractual obligations.
 

Finally, an Umbrella Liability Policy is often not a luxury but a necessity for the American market. It increases the coverage of your other policies and offers extra protection in the case of excessively high claims — something that is real in the US.

Our approach for Belgian companies in the US

Together with our American partners, we guide you through the complex American insurance landscape.

We analyse your activities, the states where you are active and the requirements of your American partners, and put together a compliant insurance package that integrates seamlessly with your Belgian master policy.

You don’t have to fathom the complexity of the American market on your own. We do that for you.

Want to know more?

Contact us: Info@internationaalverzekeren.be or via the contact page.

Together with our USA partner, we guide you to a solution.