This section discusses the need for expatriate liability insurance. This coverage is needed to protect the net worth of the expatriate family from lawsuit, damage award, and other legal judgments that could happen in the host country, home country or even in the United States.

Here are the facts regarding the need for expatriate liability insurance:

1. Your employer is NOT providing you with this insurance coverage. (True 96% of the time).
2. Home country insurance is not protecting you in the host country. For example, some expatriates keep their house in the home country and think liability insurance is still covering them. (This is NEVER the case. In fact, homes unoccupied for over 90 days need a special coverage called vacant homeowners insurance.)
3. Your employer cannot step in and pay a local lawsuit or damage award that is personal in nature. (True 90% of the time. Assuming you will be in that 10% is gambling your net entire worth. Every expat thinks they are important enough to be in that 10% where the company will get involved but there are both legal and tax reasons why employers can't get involved in almost all cases.)
4. If you are sued or found negligent causing damages in something related to your everyday work or even your commute to work there is a 90% chance your employer does have good insurance for this. (We are talking about the need to protect from exposures everywhere else, or the negligence of your family with you in the host country).
5. If you are found negligent and ordered to pay a damage award, a medical bill, etc. and you are not insured you will either have to pay it yourself or leave the country, assuming you will be allowed to leave the country. If you flee the damages, of course, your job will be at risk because you will have left your expatriate assignment.