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Thingsto knowif youneedH.E.L.P.[Hostile EnvironmentLiabilityProtection]
In today’sworldfull of wars,terroristthreats,openseapiracy,andjoboutsourcing,manyfirmsare
startingto lookat workin foreigncountries - especiallysocalled “hostile environments”or“hotzones”
such as the Middle East,Africa,Asia,anddrug lordinfestedregionsof MexicoandColumbia. The
reasonsare many, butthe primarymotivationsare (i) untappedopportunity,and(ii) the opportunityfor
higherprofitmargins. Before jumpingintocontractsforthese new opportunities,itisimportantto
knowthe necessitiesforsafelyandprofitablyperformingworkinforeignandoftenhostile
environments. Whilethese issuesare importanttoall classesof business -- fromthe architects,
engineers,andcontractsrebuildingpost-warregions,tooil fieldworkers,securityindustryfirms
protectingoil fieldsandconstructionsites - - the below willfocusprimarilyonthe securityindustry.
1. Knowingthe OperatingEnvironment/Culture - - mostof the world’shostile environmentshave
vastlydifferentcultural expectationsandrulesthanhere inthe UnitedStates. Assuch,itis very
importantto understandnotonlyhow theyapplytodoingbusiness,butalsohow theyapplyto
everydaylife inthatparticularcountryorregion.Failure toabide byreligiousorgenderrelated
cultural normscoulddo more than merelyinsultthe peopleof thatnation,butendangeryour
employees. Assuch,propertrainingmustinclude sessionsonthe culture of the regioninwhich
the contract is located;
2. IdentifyLiabilityIssues/ContractIssues - - Aswithany domesticcontract,itis essentialto
carefullyimplementpostordersinthe contextof the operationsandvenue. Amongthe issues
to addressare adequate training,staffing,andincidentlogprocedurestobe followed.
Additionally,careful attentiontoindemnificationandholdharmlessprovisionsiscritical asyou
do notwant to create liabilitybeyondthe scope of yourpolicyterms;
3. Procure Appropriate Coverage - - inadditiontoa worldwide coverage territory,itisimportantto
procure any coverage enhancementsnecessitatedbythe venue,operations,andpostorders. It
issimilarlyvital thatthe policynotcontainwaror terrorismexclusions. Aseverycontractwill
presentdifferentcoverageneeds,youmayneedtoconsider“one-job”policiesversusablanket
policyforall hostile environmentcontracts;
4. Be Aware of Governance Issues - - wheneverpossible,the contractshouldbe governedbythe
lawsof the UnitedStatesor some othervenue withlawsthatare modeledonthe British
common-laworsimilarstatutoryscheme. Seriousissuescanarise if the contract isgovernedby
a regional ortribal setof lawsas theyare oftentimesnotadequatelycodified;
5. Venue Selection - - Furthertoitem4, contractual assignmentof venue iscritical. While manyUS
Departmentof Defense contractswill mandateUScourts,contracts withforeigngovernments
or foreignbusinessentitiesmaycall fordisputestobe triedintheirlocal courts. Clearly,that
will likelynotbode wellforthe “visitingteam”;
The above is buta brief outlineof issuestoconsiderpriortostartingworkina foreignvenue- -especially
a so-called“hostileenvironment.” For answersto additional questions,orinformationonprocuring
Hostile EnvironmentLiabilityProtectionforanyclassof business,youmaycontactme at
dfarber@eldoradoinsurance.com orviatelephone at313-329-0411.
HELP final

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HELP final

  • 1. Thingsto knowif youneedH.E.L.P.[Hostile EnvironmentLiabilityProtection] In today’sworldfull of wars,terroristthreats,openseapiracy,andjoboutsourcing,manyfirmsare startingto lookat workin foreigncountries - especiallysocalled “hostile environments”or“hotzones” such as the Middle East,Africa,Asia,anddrug lordinfestedregionsof MexicoandColumbia. The reasonsare many, butthe primarymotivationsare (i) untappedopportunity,and(ii) the opportunityfor higherprofitmargins. Before jumpingintocontractsforthese new opportunities,itisimportantto knowthe necessitiesforsafelyandprofitablyperformingworkinforeignandoftenhostile environments. Whilethese issuesare importanttoall classesof business -- fromthe architects, engineers,andcontractsrebuildingpost-warregions,tooil fieldworkers,securityindustryfirms protectingoil fieldsandconstructionsites - - the below willfocusprimarilyonthe securityindustry. 1. Knowingthe OperatingEnvironment/Culture - - mostof the world’shostile environmentshave vastlydifferentcultural expectationsandrulesthanhere inthe UnitedStates. Assuch,itis very importantto understandnotonlyhow theyapplytodoingbusiness,butalsohow theyapplyto everydaylife inthatparticularcountryorregion.Failure toabide byreligiousorgenderrelated cultural normscoulddo more than merelyinsultthe peopleof thatnation,butendangeryour employees. Assuch,propertrainingmustinclude sessionsonthe culture of the regioninwhich the contract is located; 2. IdentifyLiabilityIssues/ContractIssues - - Aswithany domesticcontract,itis essentialto carefullyimplementpostordersinthe contextof the operationsandvenue. Amongthe issues to addressare adequate training,staffing,andincidentlogprocedurestobe followed. Additionally,careful attentiontoindemnificationandholdharmlessprovisionsiscritical asyou do notwant to create liabilitybeyondthe scope of yourpolicyterms; 3. Procure Appropriate Coverage - - inadditiontoa worldwide coverage territory,itisimportantto procure any coverage enhancementsnecessitatedbythe venue,operations,andpostorders. It issimilarlyvital thatthe policynotcontainwaror terrorismexclusions. Aseverycontractwill presentdifferentcoverageneeds,youmayneedtoconsider“one-job”policiesversusablanket policyforall hostile environmentcontracts; 4. Be Aware of Governance Issues - - wheneverpossible,the contractshouldbe governedbythe lawsof the UnitedStatesor some othervenue withlawsthatare modeledonthe British common-laworsimilarstatutoryscheme. Seriousissuescanarise if the contract isgovernedby a regional ortribal setof lawsas theyare oftentimesnotadequatelycodified; 5. Venue Selection - - Furthertoitem4, contractual assignmentof venue iscritical. While manyUS Departmentof Defense contractswill mandateUScourts,contracts withforeigngovernments or foreignbusinessentitiesmaycall fordisputestobe triedintheirlocal courts. Clearly,that will likelynotbode wellforthe “visitingteam”; The above is buta brief outlineof issuestoconsiderpriortostartingworkina foreignvenue- -especially a so-called“hostileenvironment.” For answersto additional questions,orinformationonprocuring Hostile EnvironmentLiabilityProtectionforanyclassof business,youmaycontactme at dfarber@eldoradoinsurance.com orviatelephone at313-329-0411.