Georgia Adjuster Practice Test

Who benefits from the Foreign Coverage Endorsement in workers' compensation policies?

1. Only domestic workers.

2. Employees traveling for work internationally.

3. Freelancers working overseas.

4. All employees regardless of location.

The correct answer is: Employees traveling for work internationally.

The Foreign Coverage Endorsement in workers' compensation policies is specifically designed to extend coverage to employees who are traveling for work internationally. This endorsement is crucial for employers who send their employees abroad for business purposes, as standard workers' compensation policies may not cover injuries or illnesses that occur outside the United States. When employees are traveling internationally, they are exposed to different risks and potential liabilities that may not be addressed under domestic policies. Therefore, this endorsement ensures that their medical expenses, lost wages, and other benefits associated with work-related injuries while overseas are covered. The other options do not capture the primary purpose of the endorsement. Domestic workers would not benefit from this endorsement since it specifically addresses international coverage. Freelancers working overseas may not be covered unless they fall under the employer’s policy, and not all employees, regardless of their location, will benefit, as the endorsement targets those on international assignments.