Tariffs, ransomware, data center disruptions, sanctions, war, health crises, natural disasters, and geopolitical turmoil can all trigger disputes, losses, and regulatory action with consequences that ripple across borders. Insurance is a key tool for transferring that risk when the unexpected happens.
According to the Marsh Global Insurance Market Index, rates fell 6% in Q2 2026 across most coverage lines, even as claims – particularly in U.S. casualty – remain high. That may mean favorable placing conditions for many policyholders, but the geopolitical and catastrophe outlook remains highly uncertain. Policyholders should understand what their programs cover and know how to respond when a claim arises.
Reviewing global coverage and having a game plan is an important part of due diligence. Think of it as the insurance equivalent of the tabletop exercises many companies already conduct for data breaches.
If your business operates internationally, you want to be prepared to assess coverage and address insurance issues quickly when a claim, crisis, or loss hits.
Our integrated insurance coverage team around the globe recommends working through two checklists: one for reviewing your program before a claim arises, and one for responding when it does.
Coverage review checklist
No policy or program is perfect or free of exclusions, but reviewing your coverage before a claim or crisis arises helps ensure the right protection is in place and minimizes surprises. Use the questions below as a checklist to assess your program now and help you act quickly when a loss occurs.
Know your program structure
- Do your policies cover you worldwide?
- Are “local” in-country policies required?
- If so, how do the policies across different jurisdictions interrelate and how do the policies address issues of interpretation (if at all)?
- If any local policies are written in the language of the country of origin, does the relevant team understand the terms and conditions and how the local policy may relate to the larger program?
- Note that in some jurisdictions, standard policy terms may be subject to mandatory judicial review to ensure fairness and transparency, which can affect the enforceability of specific provisions.
- Is there a major policy for U.S.-based operations and one for the rest of the world?
- Are there excess or umbrella policies?
- If so, what and whom do they cover?
Know how disputes will play out
- What are the dispute resolution provisions in the policy? Do they require mediation, arbitration, or allow for litigation (and in which jurisdiction)?
- What choice of law applies to the coverage dispute? Are there any restrictions?
- Within the EU, for instance, the freedom to choose the governing law of an insurance contract may be significantly restricted.
Check notice and defense terms
- What are the notice provisions in the policies for reporting claims or potential claims or losses?
- Does the policy provide for a duty to defend or for reimbursement of defense costs? What are the defense arrangements? Do you have a choice of counsel?
- What information must be provided to the insurer to avoid potential coverage limitations?
Close the gaps in your coverage
- Are there potential gaps between programs?
- For example, if a claim may be excluded under one policy, is it covered under another?
- If more than one policy may apply to a claim, how do the policies work together in terms of defense obligations and retentions?
- Check the existence and application of any “Other Insurance” clauses that can dictate how the policies respond to particular claims or losses.
- Are they “cumulative” coverages, and, if so, what is the local law regime for cumulative insurance in each country?
- Does your program contain the latest coverage enhancements? Have exclusions been negotiated, narrowed, or deleted to the extent possible?
Managing a claim checklist
When a claim, potential threat, or physical loss hits, you need to act quickly and deliberately:
Give notice early and broadly
- Give broad and prompt notice to all potential policies and excess insurers in the coverage tower.
- Late notice is one of the most common coverage defenses. However, legal consequences vary significantly by jurisdiction. In some, late notice sanctions require an express basis in the policy terms and do not arise automatically. In other jurisdictions, consequences may range from complete denial of coverage to a proportional reduction of the insurer’s obligation.
- Ensure that the format of the notice complies with any express policy terms.
- Determine whether giving notice of a potential claim (or circumstance) is allowed and advisable.
Get defense arrangements right
- Analyze defense arrangements (whether duty to defend or reimbursement structures) and obtain consent to counsel.
- Proactive negotiation of preferred counsel, potential rates, and – if a panel is required – adding counsel to the panel may help alleviate a source of frustration.
- If counsel is appointed, determine whether potential conflicts in coverage positions may provide for independent counsel to be obtained at the insurer’s expense.
Manage deadlines and obligations
- Know the deadlines for notice and any other filing obligations, such as submission of proof of loss.
- If proof of loss is required, ensure that the submission meets the requirements specified in the policy.
- Know the communication and cooperation obligations.
Protect privilege and preserve rights
- Be mindful of issues relating to attorney–client privilege (or other legal privilege) when dealing with insurance brokers and insurers; be aware of the applicable law. Determine whether any NDAs or non-waiver agreements are required. Review your privilege position regularly.
- Respond to and track reservation of rights or other position letters.
- Review “consent” or other policy provisions when resolving claims (including defending or settling).
- Consider procedural venues for coverage disputes, which can have important strategic implications.
- Understand the choice of law and any limitation periods (including contractual limitation periods contained in the policy).
- Understand the methods for interrupting the limitation period under the applicable law, as these methods vary by country.
- Consider and comply with any policy obligations to preserve insurers’ rights (such as subrogation rights).
Insurance is one of the most valuable tools available to businesses operating internationally, as raw materials, supply chains, and customers cross borders every day. When a crisis, claim, or loss arises, coverage counsel who understand the insurance markets, policy terms, and country-specific laws can make the difference between a program that responds and one that falls short.
The authors are members of Reed Smith’s Insurance Recovery Group, a global, policyholder-focused practice advising some of the world’s largest companies on insurance policy placement negotiations, high-stakes insurance disputes, and recoveries.
Client Alert 2026-190