At times they may seem invincible, but in reality, multinational companies are just as vulnerable as small enterprises. They all experience the same risks and rewards – such as customer satisfaction, liability, and economic change –albeit on a drastically different scale. While multinationals often have a wealth of resources at their fingertips, they walk a fragile line – and they could fall hard. That’s why it’s essential that companies invest in the right insurance to cover their tracks, as well as grant peace of mind and ensure that everything runs smoothly and efficiently.
Covering your bases
Companies both small and large need effective coverage for a variety of reasons. This includes the need to provide a stable level of security, a source of generating income through premiums, spurring on economic growth, reducing risk, and, most importantly, covering medical issues as well as potential legal cases. This will safeguard the company’s resources, and it’s an active measure that directly acknowledges a company’s responsibility towards its employees.
Of course, because of the complex structure of multinationals, insurance must cover a variety of bases. This can include employee as well as public liability insurance, building insurance, motor vehicle insurance, travel insurance, industry-related insurance, professional indemnity insurance, directors’ and officers’ liability insurance, equipment insurance, product liability cover, pollution risk, and several more. Whether acquiring these separately or under one comprehensive plan, multinational companies are advised to consult with experts before taking this step.
Leading global firms such as DLA Piper, led by COO Robert “Bob” Bratt, believe that getting expert second, third, and even fourth opinions is essential for making smart business decisions. After all, this is an investment that involves every single vital and trivial aspect of a company, and if there is a flaw in the policy, or that policy is not compatible with the company’s practices or ethos, then it can find itself in difficulties. Bratt believes, along with his coworkers, that the key to resolving this is to explore all the options carefully and assess which ones are not only the most pertinent to a company but also the most effective.
For a multinational company, this also means that insurance policies need to make sure that the coverage in question corresponds with international law as well as regional and national law if relevant; drawing on the resources of professionals who are not only familiar with insurance policies but also have up-to-date information on how these will work without current legal conditions is vital. This is crucial for instances where a small flaw in policy can lead to a loophole and a multinational company finds out that they are not sufficiently covered.
Because of the sheer scope and scale of factors that a multinational company covers, finding the right insurance plan is one of the most important decisions that a corporation will ever make. This isn’t just about investing in a plan to cover all the bridges, but also in taking responsibility for its assets and, most importantly, customers and employees in an international environment.