The joy of your first foreign order usually comes with a surprise attached: the insurance requirements are different from what you are used to at home. Different limit levels, a certificate in English or German, unfamiliar terminology, and a contract that refers to foreign law. This article prepares you for handling foreign clients' expectations.
- Foreign clients typically expect higher limits and a more formalised certificate.
- Key questions: territorial scope, the applicable law, and the certificate's language and content.
- Translating the terminology is a pitfall – the EN–DE–HU mini glossary helps here.
What can you expect in the requirements?
Three typical extras compared with the routine at home. First: scale – in a number of Western European markets, the customary limit expectations are higher, and the client brings the habits of its own market. Second: formality – at international companies, the certificate of insurance is a standardised document with a defined set of data; a requirement may be to name the client as co-insured, or to designate it as the certificate holder – this is a policy-dependent option that needs to be agreed with the insurer. Third: how the type of cover is named – the concepts of public liability, professional indemnity and product liability do not always map exactly onto the Hungarian products; the mini glossary helps with matching them up.
Territorial scope and the question of governing law
Two technical points that become critical for foreign work. Territorial scope: your policy needs to extend to the country where you work or ship to – and the details of the definition matter too (territorial scope article). Governing law and where claims are brought: if foreign law applies to the contract, claims may also follow that law – some policy terms also look at where the claim is brought. For anything touching the US or Canada, special rules typically apply – always flag this when requesting a quote.
How to prepare: the steps
First step: translate and interpret the client's requirement wording precisely – what is required, at what limit, with what certificate. Second: compare against your policy – territorial scope, limit, types of cover (checklist). Third: fill any gaps – territorial extension, raising the limit, possibly a solution tailored to the foreign work (extensions). Fourth: obtain the foreign-language certificate – insurers are set up for this, but allow for lead time (certificate article).
The next step
Before a foreign order, the best timing is to clarify things before you submit your offer: the cost of insurance compliance belongs in the price. Bring the requirement wording to a free consultation – and if you work abroad regularly, let's build it into your annual-review routine (article).
Example: the first German order
A joinery workshop's first German order is bigger in every respect: value, expectations, paperwork. The client's draft contract asks for Betriebshaftpflicht cover, with a defined Deckungssumme, and for a Versicherungsbestätigung to be attached to the contract. The workshop's policy has Hungarian territorial scope and a Hungarian-language certificate – so the list is: territorial extension to Germany, a limit check against the expected scale, and requesting a German-language certificate. All three are routine items if started in time – and all three become obstacles if they only surface on the day the contract is signed. The insurance side of entering a foreign market is no more complicated than the domestic one – you just need to start earlier.
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