A company may need foreign local directors’ and officers’ insurance liability policy if it has foreign subsidiaries with assets and a local board of directors in the particular foreign country. Insurance may also be needed if there is a local regulatory requirement that the insurance must be purchased such as the requirements of Australia, Brazil, India, Korea, Philippines, Singapore.
Some regulatory requirements tax any proceeds paid on behalf of directors or officers. Some countries require that some portion of the premium must be paid by the director or officer in order for the contract to be valid.
A company can arrange for local policies by purchasing a local policy through a local foreign broker, a fronted program, a local policy through a carrier that provides a master worldwide program and has the ability to issue local policies where needed.
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