Ep. 565 Foreign Voluntary Workers’ Compensation: Closing the Coverage

Rancho Mesa’s Marketing & Media Communications Specialist Megan Lockhart sits down with Vice President of the Human Services Group Sam Brown to talk about closing coverage gaps for cross-border teams with foreign voluntary workers’ compensation insurance.

Show Notes: ⁠⁠⁠⁠⁠Subscribe to Rancho Mesa's Newsletter⁠⁠⁠⁠⁠

Host: ⁠⁠⁠⁠⁠Megan Lockhart

Guest: ⁠⁠⁠⁠⁠Sam Brown⁠⁠⁠⁠⁠

Producer/Editor: Jadyn Brandt

Music: "Home" by JHS Pedals, “Breaking News Intro” by nem0production

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Transcript

Megan Lockhart: You're listening to Rancho Mesa's StudioOne Podcast. Where each week, we break down complex insurance and safety topics to help your business thrive. I'm your host, Megan Lockhart, and I'm joined by Sam Brown, Vice President of the Human Services Group with Rancho Mesa. And today we're going to talk about closing coverage gaps for cross -border teams with foreign voluntary workers' compensation insurance.

So Sam, welcome to the show.

Sam Brown: Thanks, Megan. Always enjoyed being back in StudioOne.

ML: Happy to have you. Now, the San Diego and Tijuana communities have traditionally had a really close relationship due to their proximity and cross-border business activities. So it's not uncommon for employers in the U.S. to consider hiring talent from across the border or have employees travel into Mexico for business purposes.

So what unique challenges does this create for workers' compensation coverage?

SB: Great question, and important topic. So what's important for employers to understand is that if they have employees who are traveling outside the United States and if they are injured, their workers' comp coverage and policy is not going to respond to those injuries with any sort of benefits. That is where we introduce foreign voluntary workers' comp coverage to our clients to address this exposure. So where any employee can be assured that there is coverage because it's required by law, that is not the case with some of the alternatives. So it's important for employers to ask themselves if it's the right coverage for them.

ML: Okay. So what type of employment situations should cause employers to consider purchasing foreign voluntary workers' compensation insurance?

SB: Sure. Where we're starting to see this a lot is for San Diego-based employers who have employees who have moved south across the border and are commuting into work every day, especially for those employees that are working hybrid. So maybe Monday, Friday, they commute into San Diego from south of the border. And Tuesday through Thursday, they're working at home and have the potential to get injured there. We also have potentially employees on long-term international assignments. And then we may also have employees on short-term business trips going across the border. So it could be a field trip for school. It could be on a mission of some sort. Those are the three areas that come to mind.

ML: Okay. That makes sense.

So what specific benefits does VFWC insurance provide for employees injured while working abroad? And how does it differ from workers' compensation policies for employees in the U.S.?

SB: Yeah, so FVWC stands for Foreign Voluntary Workers' Comp Coverage, and that's one avenue that employers can take to cover these injuries that happen outside of the U.S. border. So, as I mentioned, unlike workers' comp insurance, this is not a required coverage, but the benefits to injured workers are really helpful and sound.

So number one, you've got medical expenses and lost wages. Number two, you have repatriation, which, for those of you don't know, that pays for the cost of transporting an ill or injured employee to their home country for treatment, or at least to a suitable medical facility and can also cover the return of remains if an employee dies. Extended coverage can include 24-hour coverage, endemic diseases like malaria, acts of war or terrorism, all these are often excluded by standard policies. Then, of course, you have employer liability protection, which protects the business from potential lawsuits if an employee sues, and facilities care, which is important. Many policies will provide a point of contact to help employees navigate the foreign health care system, which can be a significant concern for those in unfamiliar countries.

ML: Yeah, I could see how this would be a really important coverage for some organizations. So Sam, if listeners have questions about FVWC insurance, what's the best way to get in touch with you?

SB: I can be reached at (619) 937-0175 or sbrown@ranchomesa.com .

ML: All right. Well, Sam, thanks for joining me in StudioOne.

SB: Yeah, thanks for having me. This is fun.

ML: Thanks for tuning in to our latest episode produced by StudioOne. If you enjoyed what you heard, please share this episode and subscribe. For more insights like this, visit us at ranchomesa.com and subscribe to our weekly newsletter.