Georgia Adjuster Practice Test

What type of endorsement should a manufacturing company add to its workers' compensation policy for employees traveling abroad?

1. Foreign Coverage Endorsement

2. International Travel Insurance

3. Global Employee Protection

4. Cross-Border Liability Extension

The correct answer is: Foreign Coverage Endorsement

A manufacturing company should add a Foreign Coverage Endorsement to its workers' compensation policy for employees traveling abroad to ensure that those employees are protected while they are in a foreign country. This endorsement extends the workers' compensation coverage to include injuries or illnesses that occur outside the United States, addressing the specific risks associated with international travel. When employees travel abroad for business purposes, they may encounter different legal requirements and potential hazards that can vary significantly from what they experience domestically. The Foreign Coverage Endorsement helps to bridge this gap by providing necessary coverage for medical expenses, lost wages, and rehabilitation costs that arise from work-related injuries sustained while overseas. The other options, while related to employee safety during international travel, do not specifically provide the required workers' compensation coverage needed for injuries that occur during the course of employment in a foreign country. For instance, International Travel Insurance typically covers a broader range of incidents, such as cancellations and lost luggage, rather than specifically providing workers' compensation benefits. Global Employee Protection and Cross-Border Liability Extension may also address different facets of risks associated with an international workforce but do not serve the precise purpose of ensuring that employees have workers' compensation coverage while working abroad.