Streamline Business & Save Costs with a Global Master Insurance Policy

Samantha McKeag
Sep 30
15 min read

Updated: Nov 19

International Business Comes With International Risk

International business comes with international risk. It’s a fact. Going international opens businesses up to risks and complexities that domestic businesses often don’t need to worry about.

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The Global Master Program

International business comes with international risk. It’s a fact. Going international means opening your business up to risks and complexities that domestic businesses often don’t need to worry about. Since every country has different insurance laws, regulations, and requirements, it’s vital that every business considering expanding business across the ocean do its due diligence.

What kinds of exposures exist in this country? What do their local insurance policies cover? Do their local insurance policies conflict or match my Home insurance policy? How do I close the gaps to safeguard my business?

The answers to those questions can be found within this article.

But before we go into the purpose and benefits of a Global Master Insurance Policy, let’s consider what it looks like without one.

WMB Case Study

Multinational Companies Without a Global Master Program –

A Hypothetical Case Study

Hypothetical Company & Details:

Gordon’s Cereals
Opened its doors in 1999
Has 6 locations across Canada, each of them in a different province.
Currently, each location is covered under its own individual commercial insurance policy.
Company is considering opening a manufacturing facility in London, England.

At it stands currently, the 6 locations are located within Canada; however, since each location is in a different province, each location has its own dedicated commercial insurance policy.

Now, before Gordon’s Cereals can make the leap across the pond, they will need to complete their due diligence: researching and understanding the legal and regulatory landscape for commercial insurance in the UK and the additional risks are they exposed to that they are not exposed to in Canada.

Some risks and exposures the company should consider include:

Property & Operational Risks

When assessing risks for a business, it’s important to consider both the usual hazards, such as fires, floods, natural disasters, and equipment breakdowns, as well as operational challenges that could disrupt day-to-day activities. Supply chain issues are particularly critical: businesses need to evaluate where products are being shipped both outbound and inbound, understand the associated costs and timelines, and weigh the likelihood of delays against their potential impact on operations.

Additionally, in certain areas of the UK, terrorism remains a genuine concern, and this threat must be factored into any comprehensive risk assessment to ensure the safety of personnel and continuity of business operations.

Regulatory & Legal Risks

Since non-admitted insurance is generally prohibited in the UK—except for a few limited exceptions—obtaining a local insurance policy from a reputable and licensed UK insurer is highly advisable. Doing so not only ensures compliance with local regulations but also provides protection that is recognized and enforceable under UK law.

Additionally, food production laws and regulations differ significantly between Canada and the UK, making it essential for businesses to fully understand and adhere to these requirements. Careful attention to local legal standards, safety protocols, and labeling requirements will be vital to maintaining smooth operations, avoiding costly penalties, and protecting both the business and its customers.

Employee Risks

In addition to general business risks, UK law requires all employers carry Employers’ Liability Insurance, ensuring coverage for employees in the event of work-related injuries or illnesses. Health and safety laws and regulations also differ between Canada and the UK, and these differences must be carefully accounted for when operating a facility abroad.

Adhering to local requirements is not only a legal obligation, but also a critical component of protecting staff, maintaining operational continuity, and avoiding costly fines or disruptions. Combining compliance with a proactive approach to workplace safety helps businesses build a strong, responsible presence in the UK market.

Reputational & Legal Risks

Barcode Standards/Compliance

Companies engaged in food and beverage (F&B) manufacturing in the UK must comply with specific barcode regulations and broader labelling laws before entering production. Barcodes are not only a commercial requirement; they also play a critical role in legal traceability, product-recall readiness, and overall supply-chain compliance.

Barcodes must be scannable and meet ISO standards for size, contrast, and reflectivity. They must also be verified to ensure quality and to prevent supply-chain or retail rejections. Regular barcode verification is essential to avoid fines, lost contracts, and product recalls resulting from illegible or incorrect coding.

Although Canada does have its own barcode standards and regulations, they are not as strict. Whereas in the UK it is compulsory for every business to operate under strict barcode, labelling, and GS1 standards, Canada’s barcode regulations are optional and not mandatory under the Safe Food for Canadians Regulations. Canada considers barcode errors as quality control issues and not regulatory exposures.

Financial & Compliance Risks

Although a local policy is highly recommended, it is possible to attempt to use your Home policy to recover from loss or damage; however, there are fees, taxes, and penalties implemented by the country in question (in this case, the UK) that must be considered.

The reasons for this are many, however, the largest one is because when no local policy is purchased in the UK, the UK loses out on premium tax revenue and can’t regulate the foreign insurer. Local rules ensure claims are enforceable, policyholders are protected, and the domestic insurance market benefits.

Should an employee get injured (for example) and said employee puts in a claim with the company and the claim is accepted, the employee would be entitled to a certain amount of compensation. However, if no local policy was obtained, the company would be barred from filing a claim in the UK because, by UK law, the employee injury claim would fall under the UK’s Employers’ Liability Insurance — which must be a UK-admitted policy. Without a UK-admitted policy (i.e.: local policy), the claim would then need to be processed through the Canadian Home Policy. This would result in the claims compensation having to be converted and delivered to the employee in Canadian currency.

So, let’s look at the numbers:

Hypothetically, we will say that the Gordon’s Cereals employee at the London facility is awarded compensation of $500,000 – that’s $500,000 Canadian. As of this writing, the CAD to GBP (British Pounds) is 1 CAD = 0.5354 GBP.

Therefore, $500,000 CAD would be equivalent to £267,700 GBP.

Thus, in this hypothetical scenario, this UK-based employee wouldn’t receive the claim amount he or she would have if Gordon’s Cereals had a local policy.

However, that’s not the only implication Gordon’s Cereals would face throughout this claims process while not having obtained a local policy. The most pressing concern in this scenario would be the fact that, in Canada, Employers’ Liability Insurance is called Worker’s Compensation and the two insurances – although basically the same idea – vary greatly in their regulations and policies - and how they are implemented.

Additionally, Employers’ Liability Insurance is required by law for any company with operations based in the UK. And since Canada doesn’t automatically have an Employers’ Liability policy (due to Canada’s Worker’s Compensation policy), it would open Gordon’s Cereals up to hefty fees, taxes, and penalties.

Conflicts that Arise Without Local Insurance

Violation of UK Insurance and Labour Laws

Since Gordon’s Cereals did not have a local policy in the UK, they also did not have a policy for Employers’ Liability, which is required by UK law, Gordon’s Cereals would ultimately be penalized.

UK Penalties for Non-Admitted Insurance

£2,500 per day the business operates without the required insurance
If the company never held ELI, this fine could stack up over time
Additional fines up to £1,000 for failing to produce a certificate of insurance when asked

Tax & Reporting Obligations

Paying $500,000 CAD directly as compensation or settlement may trigger payroll tax, income tax, and corporate tax issues. If the compensation is classified as employment income (rather than damages for the injury), Gordon’s Cereal may have to pay:

Civil Liability

Given the fact that the injured employee has lost nearly 50% of the compensation he or she was entitled to, once the claims process has been completed, the employee would be legally entitled to then turn around and sue Gordon’s Cereals if he or she feels that their compensation amount was not adequate.

In this case, Gordon’s Cereals would (if they lost) then have to cover legal costs, damages, and court fees out of pocket to defend their suit.

Canadian Taxes

Although the injury took place in the UK, the company itself is still a Canadian-based company and, thus, the Canada Revenue Agency (CRA) may scrutinize the claims payment to ensure that the $500,000 compensation was recoded as a deductible expense.

Additionally, if the UK facility is not a legal subsidiary, but rather a branch or permanent establishment, the Canadian parent company might face additional tax reporting requirements (e.g., Form T1134) in Canada.

Penalties for Criminal Liability and/or Director Penalties

In the UK, company directors can actually be held legally responsible for failures to comply with employer insurance obligation which could result in:

Hefty fines
Criminal prosecution
Disqualification from acting as a director

Reputational Damage & Regulatory Scrutiny

A Canadian company operating abroad without meeting local insurance and employment law obligations could:

Face restrictions or bans on operating in the UK
Lose contracts or partnerships with other businesses
Face regulatory scrutiny in Canada as well (if there are questions around corporate governance)

So, again, let’s look at the numbers:

Estimated Costs/Risks Associated with Non-Admitted Insurance

Item	Estimated Cost
Employer’s Liability Insurance Violation Fine	£2,500/day (up to hundreds of thousands CAD)
Civil settlement payout	$500,000 CAD
Legal fees (defense, compliance, settlements)	$50,000–$200,000 CAD
NICs and Payroll Tax (if deemed taxable)	13.8%+ on the payout
Possible director fines or disqualifications	Varies
Loss of tax deductibility (corporate taxes)	Up to 26.5% of $500k if disallowed
Reputational damage	Unquantifiable

International Commercial Insurance Policies for Gordon’s Cereals

The hypothetical scenario examined thus far only provided an example of one considerable risk: employee liability. But there are so many more risks that need to be considered as well as which policies should be implemented to protect against which risks.

To combat all the additional and complex risks associated with doing business overseas, there are various individual lines of coverage that should be considered over and above the Home Policy:

UK Property & Casualty

Although Gordon’s Cereals Home Insurance Policy protects property & casualty claims, commercial P&C insurance is different; not just in policy language, but claims regulations between the two countries are vastly different as the Home policy doesn’t cover some of the mandatory insurance regulations that exist in the UK.

While Canada’s P&C coverage has the option of adding in Business Interruption Insurance, it is not automatically added as part of the P&C coverage, in the UK, it is automatically included in P&C Coverage. Additionally, UK’s P&C policies include a mandatory line of coverage called Employers’ Liability insurance, which Canada doesn’t have at all – Canada’s version of the UK’s Employers’ Liability insurance is Workers’ Compensation insurance, which is not a line of coverage included in P&C as it a stand-alone mandatory program that requires business registration and is a government-run department, while Employers’ Liability is not government-run, but is a mandatory insurance policy that all employers must purchase.

So, just in the P&C coverage alone, the Home policy would not be “admitted” due to the major differences between Canada’s P&C and that of the UK.

This means that for Gordon’s Cereals to protect their business in the UK, they would need to secure an additional UK-issued P&C policy.

UK's Public Liability Insurance

In Canada, it’s called Commercial General Liability (CGL) Insurance. This would be a critical line of coverage for Gordon’s Cereals as the UK’s CGL-equivalent, Public Liability Insurance is what protects food manufacturers. While Canada’s CGL coverage is somewhat broad and typically includes products/completed operations, personal injury, legal defense costs, sometimes tenant legal liability, UK’s Public Liability insurance is slightly more focused and mainly covers third-party bodily injury and property damage.

So, again, just comparing these two similar but very different lines of coverage, the gaps between Canada and the UK is quite significant.

This means that for Gordon’s Cereals to protect their business in the UK, they would need to secure an additional UK-issued Public Liability Insurance policy.

UK's Product Liability Insurance

In Canada, the CGL policy includes product liability, however, in the UK, their Public Liability policies (their CGL-equivalent) is mostly geared towards third-party liability, thus, there is the option of adding an additional stand-alone policy in the event that a product (such as cereal) is contaminated, causing illness.

This means that for Gordon’s Cereals to protect their business in the UK, their CGL policy won’t stack up, so they would need to secure an additional UK-issued Product Liability Insurance.

Other Types of International Insurance to Consider

As we have come to learn, a Canadian insurance policy would be very difficult to utilize successfully if a claim were to be made in the UK. The lines described above are the most critical lines of coverage that all business – no matter the type or location – should implement into their overall business strategy; however, there are other lines of coverage that should be included, as well, to safeguard the bottom line. Though the following lines of coverage are offered in Canada, and were likely included in the Home policy, the lines of coverage below should be purchased separately for the UK facility. These include (but are not limited to):

Commercial Auto Insurance (if Gordon’s Cereals has transport and/or delivery vehicles).
Director & Officers (D&O) Liability (protects a company’s leaders from personal financial loss if they are sued for decisions made in the course of their duties. It covers legal defense costs, settlements, and judgments, helping ensure executives can manage the business without exposing their personal assets to risk.)
Cyber Insurance (protects the business from ransomware attacks and safeguards the business’s reputation should a data breach occur).
Marine, Cargo & Transit Insurance (since the business would be importing the ingredients required for the manufacturing of the cereal and also protects the cereals during transportation from the UK to Canada.

And yes, all of those coverage lines would likely already be included in the company’s Home Policy, however, due to the different legal and standardized regulations, industry policies, and policy wordings, it would be highly advisable that Gordon’s Cereals also purchased the coverage lines above to ensure their UK facility is as protected as their Canadian locations.

“When comparing Canadian Commercial General Liability (CGL) coverage with UK Public Liability insurance, it becomes clear that while both address similar forms of third-party liability, important differences in scope, terminology, and policy structure can create coverage gaps between the two jurisdictions.” -- Liz Lopez-Williams, Executive VP of Wilson M. Beck Global Risks Inc.

So Many Insurance Policies, So Little Time

For the sake of this hypothetical scenario, let’s break it down a little more and take a peek at Gordon’s Cereals current insurance portfolio:

Six individual P&C policies that include Business Interruption and CGL (to name a few) for the six different Canadian locations
Cyber insurance – for Canada
Cyber insurance – for the UK
Commercial Auto insurance – for Canada
Commercial Auto insurance – for the UK
Marine & Cargo Insurance - for Canada
Marine & Cargo Insurance - for the UK
Product Liability Insurance - for the UK
Public Liability Insurance – for the UK
Employers’ Liability Insurance – for the UK.

That is a lot of individual insurance coverage (known as “patchwork policies”) that all need to be monitored individually.

Local Insurance Will Solve Some of the Headaches

As you can see, purchasing all of these individual policies to cover the facilities in the UK would be inefficient and time-consuming (not to mention redundant, which can be costly) – the more efficient and less expensive option would be to supplement the Home policy with a local policy in London, England issued by an insurer who is legally entitled to sell insurance in London, England.

Although obtaining a local insurance policy would eliminate some of the stress, Gordon’s Cereals is still left with 6 individual insurance policies for all 6 locations within Canada, plus a supplemental policy for the facility in the UK.

The WMB Global Master Insurance Program Eliminates the Stress and Confusion

Wilson M. Becks’ Global Master Insurance Program is the gold-standard of insurance programs; it not only combines the Home policy with the Local policy, but it also automatically includes coverage for any potential gaps between the Home policy and the Local policy, while eliminating costly administrative tasks and costly redundancies.

As we explained in our report, Navigating DIL & DIC Coverage in Uncertain Economic Times, oftentimes, there are significant gaps between the coverage limits in the Home policy compared to the coverage limits in the Local policy.

However, that isn’t the only benefit of a Global Master Policy. Had Gordon’s Cereals obtained a Global Master policy to combine all 6 of their locations, as well as their facility in London, the insurer would have been the one to seek and establish local insurance with a licensed insurer in London.

Why would the insurer opt to provide this service as opposed to letting Gordon’s Cereals sort themselves out prior to entering into the Master Program?

Because brokers and agencies who have experience with international business already understand the laws and regulations of the individual countries and already have an established network of global insurers who can provide the best protection at the best costs while ensuring you’re obtaining the level of coverage that is needed for their client’s business.

Employing a Global Master Insurance Program isn’t simply about the level of coverage, nor the legalities of such – the program can also save businesses money on their premiums as well as potential compensation for possible future claims.

Establishing Local Insurance in Other Countries isn’t As Cut-And-Dry as Securing a Home Policy

As mentioned, securing local coverage isn’t always simple and often comes with complexities that a non-insurance expert would struggle to navigate. Some of these complexities include:

Securing local coverage requires a significant amount of coordination and communication among the various parties involved, such as the insurance carriers, brokers, service providers, and the company's internal departments.
It involves a high degree of uncertainty due to the differences and changes in the laws, regulations, languages, currencies, cultures, and markets of each country.
It entails a high level of risk and responsibility, as the company may face legal disputes, regulatory sanctions, reputational damages, or financial losses if the coverage is inadequate, inconsistent, or non-compliant.

For those reasons, plus a multitude of others, appointing a reputable company with knowledge and expertise in global business would be a wise business decision. Insurers such as Wilson M. Beck Global Risks have specialized expertise that have been honed through decades of experience to help our clients navigate complex international insurance programs while ensuring compliance with local regulations, and providing structured coverage that safeguards company assets, its employees, and the company’s day-to-day operations across the globe.

The ROI of a Global Master Insurance Program

By consolidating all of Gordon’s Cereals’ insurance policies – including the one in the UK – the company can eliminate redundancies, leverage global purchasing power, and achieve significant cost savings.

In short, a Global Master Insurance Program delivers substantial cost savings by reducing administrative costs through centralization, leveraging economies of scale for more competitive pricing, minimizing coverage gaps and redundancies, enhancing risk data for targeted loss prevention, and improving oversight of local exposures to ensure compliance and reduce potential fines.

More specifically, a Global Master Insurance Policy will aid in:

Consolidating Administration: Rather than managing multiple policies (and insurers) in multiple regions, a single master policy with a global insurer handling the majority of the administrative tasks associated.
Economies of Scale: By consolidating global risks with a single carrier, companies gain greater purchasing power—similar to bulk discounts—resulting in lower overall premiums
Eliminating Redundancy & Gaps: Centralized management ensures consistent coverage across all operations, eliminates duplicate policies that drive up costs, and prevents gaps that could expose the company to uninsured losses
Improved Risk Management & Data: The program delivers standardized, centralized data for detailed analysis of global exposures and claims, enabling the identification of trends, pinpointing of problem areas, and implementation of more effective, cost-efficient loss prevention strategies
Enhanced Regulatory Compliance: A Global Master Program ensures local policies comply with each country’s legal and tax requirements, helping avoid costly penalties, sanctions, or operational disruptions from non-compliance
Improved Risk Management & More Strategic Risk Financing: With a clearer view of their global risk profile, companies can align insurance coverage with actual needs, avoiding both over-insurance in some areas and under-insurance in others.

Implementing a Global Master Insurance Program provides Gordon’s Cereals with a strategic, cost-efficient approach to managing its international risks. By consolidating policies under a single framework, the company benefits from streamlined administration, reduced redundancies, and economies of scale, all while ensuring consistent coverage and minimizing gaps.

Beyond cost savings, the program enhances risk management by delivering centralized data for more informed decision-making, improving regulatory compliance across jurisdictions, and aligning coverage with actual exposures. Ultimately, a Global Master Program not only optimizes insurance spending but also strengthens the company’s resilience and operational confidence on a global scale.

Final Thoughts

A Global Master Insurance Program offers corporations a comprehensive, cost-effective approach to managing international risks. By consolidating policies across regions, companies can streamline administration, reduce redundancies, achieve economies of scale, and ensure consistent, gap-free coverage. Centralized data improves risk visibility, supports targeted loss prevention, and helps maintain compliance with local regulations, ultimately aligning insurance coverage with actual global exposures.

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