Work travel, global workforces, and international projects often raise questions about the best ways to protect your teams and assets. To ensure comprehensive protection for employees working abroad, it’s crucial to understand and utilize two key policies: Foreign Voluntary Workers’ Compensation (FVWC) and Global Accident and Health (GAH).

What is Foreign Voluntary Workers’ Compensation?

Foreign Voluntary Workers’ Compensation (FVWC) is a specialized insurance policy designed to provide coverage for employees working outside their home country. This type of coverage ensures global workforce protection through access to medical care, wage replacement, and other benefits if they are injured or become ill while working overseas. For a USA-based company, think of this as extending USA-based Workers Compensation coverage across the globe.

What is Global Accident and Health Insurance?

Global Accident and Health (GAH) insurance is another vital policy that covers employees for a wide range of accidents and health-related issues during business travel. GAH policies provide comprehensive global workforce protection for medical expenses, emergency evacuation, repatriation, and accidental death and dismemberment, regardless of whether the incident is work-related.

Why Are These Policies Important?

1. Global Workforce Protection: As businesses expand internationally, the need to protect employees regardless of their location becomes paramount. FVWC and GAH policies ensure that employees have access to the same level of care and benefits they would receive in their home country while employed or working abroad.
2. Legal Compliance: Different countries have varying regulations regarding workers’ compensation and health coverage. These policies help businesses navigate these complexities, ensuring compliance with local laws while providing consistent coverage for their employees.
3. Employee Well-being: Providing comprehensive coverage for employees working abroad demonstrates a company’s commitment to their well-being. This can improve employee morale, retention, and overall job satisfaction.

Key Benefits of Foreign Voluntary Workers’ Compensation

1. Medical Coverage: FVWC covers the costs of medical treatment for work-related injuries and illnesses, ensuring that employees receive prompt and adequate care.
2. Wage Replacement: If an employee is unable to work due to a covered injury or illness, FVWC provides wage replacement benefits, helping to mitigate the financial impact on the employee and their family.
3. Repatriation and Emergency Evacuation: In case of severe injury or illness, FVWC often includes coverage for emergency medical evacuation and repatriation, ensuring employees can return to their home country for treatment.
4. Death Benefits: In the unfortunate event of a work-related fatality, FVWC provides death benefits to the employee’s beneficiaries, offering financial support during a difficult time.
5. Coverage for Local Nationals and Expats: FVWC typically covers both local nationals and expatriates, providing a comprehensive safety net for the entire workforce.

Key Benefits of Global Accident and Health Insurance

1. Medical Expenses: GAH covers a wide range of medical expenses incurred due to accidents or health issues during business travel, whether work-related or not.
2. Emergency Evacuation and Repatriation: Like FVWC, GAH provides coverage for emergency medical evacuation and repatriation, ensuring employees receive the necessary medical care.
3. Accidental Death and Dismemberment: GAH policies include benefits for accidental death and dismemberment, providing financial support to employees or their families in the event of severe accidents.
4. Supplementary Coverage: GAH can serve as supplementary coverage to FVWC, covering additional expenses such as travel for family members or extended rehabilitation services.

Real-World Example: A Global Consulting Firm’s Experience

Consider a global consulting firm based in the USA with offices in Australia, the UK, Ireland, Dubai, Germany, India, and the Philippines. With $300M in annual sales and 1,000 employees, this firm works on projects in the cloud computing space across various industry verticals, with engagements ranging from 3 months to two years. Employees travel extensively within their regions and are typically on-site at clients about 50% of the time.

Example Claim Scenario: FVWC and GAH Policies In Action

An employee and USA citizen was injured at a corporate offsite event while working abroad in New Zealand. The injury was severe enough to require immediate hospitalization. The company activated both its FVWC and GAH policies to provide comprehensive support to the injured employee. Here’s how the policies coordinated to provide comprehensive global workforce protection to the injured worker:

1. Immediate Medical Attention:
   • FVWC Policy: Covered the costs of medical treatment and hospitalization related to work-related injury.
   • GAH Policy: Provided supplementary coverage for any additional medical expenses not covered by FVWC.
2. Emergency Evacuation:
   • FVWC Policy: Covered the cost of emergency medical evacuation back to the USA for further treatment.
   • GAH Policy: Offered additional benefits for the evacuation, ensuring all costs were covered, including special medical transportation needs.
3. Wage Replacement:
   • FVWC Policy: Provided wage replacement benefits during the recovery period.
   • GAH Policy: Could offer supplementary disability benefits if the wage replacement from FVWC was not sufficient.
4. Ongoing Care and Rehabilitation:
   • FVWC Policy: Covered the costs of ongoing medical care and rehabilitation needed for recovery.
   • GAH Policy: Provided additional benefits for extended rehabilitation services and support, ensuring comprehensive care.
5. Accidental Death and Dismemberment:
   • GAH Policy: Included coverage for accidental death and dismemberment, offering financial support in case of severe injuries.

Managing a FVWC and GAH Claim

When incidents occur that trigger both FVWC and GAH policies, it’s crucial to manage and coordinate effectively and partner with a broker that understands the intricacies of this type of policy coordination.

• Claims Coordination: The company’s risk management team should coordinate with both insurance providers to determine primary and secondary coverage.
• Clear Communication: Maintain transparent communication with the employee about coverage details, the claims process, and how the policies will work together.
• Avoiding Duplication: Submit claims in a manner that prevents duplication of benefits, ensuring seamless coverage.
• Documentation: Keep thorough records of the incident, claims submitted, and benefits received under each policy.

Conclusion

Foreign Voluntary Workers’ Compensation and Global Accident and Health policies are essential components of a comprehensive risk management strategy for businesses with an international presence and travelling workforce. By providing robust global workforce protection for employees working abroad, companies can ensure their well-being, comply with legal requirements, and foster a supportive and secure working environment. Partnering with an expert insurance broker can help you tailor these policies to your needs, manage claims efficiently, and provide ongoing support.  If you have any questions or need more information about Foreign Voluntary Workers’ Compensation and Global Accident and Health policies, feel free to Contact Us.  We are here to help you every step of the way.