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IRMI Update Quiz

Does Your Domestic Risk Need Coverage for Foreign Risk?

Which of the following situations could not create a foreign risk exposure for an otherwise domestic company?

A. An employee travels overseas on business.

B. The company sells products in the United States to a customer headquartered outside the United States.

C. The company uses equipment manufactured abroad.

D. None of the above because foreign risks only apply when a company has offices in another country.

Correct Answer: D. Many organizations assume they have no international exposures because they operate only in the United States. In reality, business travel, foreign customers, imported products, and other seemingly routine activities can create overseas liabilities and coverage gaps that standard US policies may not address. Subscribers to Practical Risk Management can learn more about coverage for a domestic company's foreign risk.