Foreign Voluntary Workers’ Comp: Do You Need It for International Staff?
Imagine this: Your employee travels to Europe for a week-long conference and slips on a wet floor at the venue, suffering a serious injury. Would your domestic workers’ comp policy cover their medical bills or lost wages?
If your business sends U.S. employees abroad, even temporarily, you need to consider foreign voluntary workers’ compensation insurance. Despite the name, this coverage isn’t just for volunteers; it’s designed to fill the gap in protection for U.S. workers operating outside the country, where domestic policies may fall short.
This article explains what foreign voluntary workers’ compensation covers, who needs it, and why it’s essential for globally operating businesses. If your employees ever travel internationally for work, make sure your workers’ compensation strategy includes this critical layer of protection.
What Is Foreign Voluntary Workers’ Compensation Insurance?
Foreign voluntary workers’ compensation insurance (FVWC) is a specialized workers’ comp policy. It extends workers’ compensation coverage to U.S.-based employees while they are working abroad, whether on a short-term assignment, long-term placement, or international travel.
It typically includes:
- Medical expense coverage for injuries sustained overseas
- Disability and wage replacement benefits
- Emergency evacuation or repatriation
- Death benefits for employee fatalities abroad
State law governs domestic workers’ compensation. In contrast, FVWC is designed to account for the unique medical, legal, and logistical challenges of treating and compensating injured employees outside the United States.
Which Businesses Need FVWC?
Any organization that sends U.S. employees abroad for business activities should consider FVWC, including:
- Companies with international sales teams attending overseas conferences
- Firms conducting clinical trials or fieldwork in foreign countries
- Nonprofits with mission or development staff working abroad
- Contractors or consultants dispatched to oversee international operations
Even a brief international trip can trigger coverage issues if your employee gets injured. Without FVWC, you may be left without a clear process or funding for medical treatment or wage replacement.
What Happens Without It? Risk Scenarios
If you rely solely on your domestic workers’ comp policy, your employee may not be covered for injuries sustained abroad. That gap could expose your company to:
- Unpaid medical expenses in foreign hospitals
- No coverage for endemic disease exposure (e.g., malaria, dengue)
- Costly repatriation if an employee needs to be flown back for care
- Potential lawsuits from employees or families due to inadequate protection
Even if a local workers’ comp system exists, it may provide far less protection than your employee would expect or legally require under U.S. standards.
What Does a FVWC Policy Typically Include?
A well-structured FVWC policy often includes:
- Medical and wage benefits comparable to domestic comp standards
- 24/7 protection while the employee is abroad for work purposes
- Coverage for endemic illness or terrorism-related injuries
- Emergency medical evacuation and repatriation assistance
Some policies may also integrate with international travel accident insurance to round out protection.
Protect Your Global Team With the Right Coverage
Employees who travel for your business are representing your brand. Don’t leave them unprotected when they’ve crossed a border. Foreign voluntary workers’ compensation insurance helps your organization fulfill its duty of care while minimizing financial and legal risk.
If your team operates globally, even occasionally, Moody Insurance Worldwide can help assess your exposure and recommend appropriate protection. Contact us for a customized review.
About Moody Insurance Worldwide
We are a specialized, independent insurance agency that provides all types of business insurance. In addition to essential Property, Liability, and Benefits insurance, we have expertise in Professional Liability, Cyber Liability, Director & Officer Liability, and International insurance coverage.