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Practical advice to protect yourself from international risks

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An investment abroad can have several advantages. This is why many opt to set up subsidiaries in another country. At the same time, international risks are just as numerous. It is therefore important to know how to choose your activity and to subscribe to insurance services.

What is the interest of choosing your activity?

When one plans to covet the international market, it is important to choose one’s activity well. It is all a question of strategy. It is important that your plans are in line with the activity you are doing. It is therefore necessary to launch yourself in a field that you know and master. On paper, this sounds simple, but in practice it is not. It is all very well to know the basics of a profession, but on an international level, it is the risks that can slow you down. They are numerous and of all kinds. We cannot mention them all, but the most important ones are natural disasters and political risks.

International business activities often take the form of outsourcing services or subsidiaries, not to mention the activities of transport companies. For shipping companies, the risks are mainly related to commuting accidents. The greatest risks are for companies based abroad. This does not mean that you should back down. The key is to know how to invest in your business. Also, no matter what business you are in, political and natural risks are inevitable. The trick to securing international business activities is to use insurance. This option is not mandatory, but it can cover a lot of damage, and even save a company’s life.

Why do I need insurance?

Every company is free to buy insurance. On the other hand, it is a necessity when looking at the practical side. For a company that operates in different countries, an international insurer is indispensable in case of a glitch such as political risks or natural disasters. A foreign or local company is well advised to be covered against the forces of nature, because a cyclone or an earthquake can wipe out everything in an instant, and no one will be responsible to pay for the damage. On the other hand, a state can expropriate a subsidiary’s capital of several thousand euros, and without any apparent reason or compensation. In this case, only the insurer can compensate the company.

It is always advisable to opt for international coverage when you have several subsidiaries. With only one insurer, the management is easier. You can also benefit from a discount if you have several companies. In an insurance contract, one can generally choose the nature of the coverage or opt for a multi-risk policy. The compensation can be in part or in full in case of accidents. It all depends on the agreement made with the insurer. As a rule, there is no better option than full coverage for all risks and full coverage in case of an accident. However, the price is not the same for the different services.

David

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