I’m a US citizen living in Berlin, freelancing for a client in New York. The client sued me in a New York court for breach of contract. My German business insurance rejected the claim because the lawsuit wasn’t filed in the EU. My old US insurance rejected the claim because I’m “permanently domiciled” outside their coverage territory. I was effectively uninsured.
Key Takeaways
- Suit Brought vs. Territory: Your policy might cover work done anywhere (Territory), but only lawsuits filed in the US (Jurisdiction).
- The “Expat” Gap: US carriers hate insuring permanent expats because they can’t assess the risk of foreign legal systems.
- Choice of Law: Your contract likely says “Governed by laws of New York.” You need a policy that respects US jurisdiction.
- Admitted vs. Non-Admitted: You might need a “Surplus Lines” policy (like Lloyd’s) that allows for global flexibility.
The “Why”: The Jurisdiction Clause
The Trap:
- Clause: “Coverage applies only to suits brought within the United States of America.”
- Scenario: You live in Germany. You do work in Germany. The client is in NY. They sue you in NY.
- Result: A standard US policy should cover this (Suit brought in US). But, the underwriter might cancel you for “Material Misrepresentation” regarding your address. You cannot use a fake US address (your mom’s house) for business insurance.
The Investigation: I Quoted 3 Major Carriers
1. Clements Worldwide
- My Analysis: Designed for expats. They write policies specifically for US citizens working abroad. They understand you need coverage for US lawsuits even if you live in Bali or Berlin.
2. Chubb Global
- My Analysis: If you have a larger entity, Chubb can write a “Global Package” that covers you locally and in the US. Overkill for a freelancer, but essential for a small agency.
3. Hiscox UK / Hiscox EU
- My Analysis: If you buy Hiscox in Europe, it often excludes US/Canada jurisdiction by default (because US lawsuits are expensive). You must pay extra to “buy back” the USA jurisdiction.
[IMAGE: Map highlighting “Jurisdiction” zones vs “Domicile” zones]
Comparison Table: Expat Coverage
| Carrier | US Lawsuits Covered? | Residency Requirement | Cost | Best For… |
| Clements | Yes | Global | | Digital Nomads |
| Hiscox EU | Optional (Add-on) | Local EU | | Residents of EU |
| Standard US | Risky (Address fraud) | US Resident | $ | Avoid if Expat |
Step-by-Step Action Plan
- Check Contract Venue: Where does the client say they will sue you? (e.g., “Courts of New York”).
- Verify “Jurisdiction” on Policy: Ensure it includes “USA” or “Worldwide.”
- Update Address: Be honest with your broker. “I live in Berlin.”
- Get “Freedom of Services” (FOS): If you are in the EU, you need insurance that complies with local regulations and covers US claims.
FAQ
Can I just use a VPN and a US PO Box?
No. If the adjuster asks for your passport stamps during a claim, they will deny you for fraud.
Do I need insurance in both countries?
Ideally, one global policy (Lloyd’s/Clements) covers both. Otherwise, you might need a cheap local policy for compliance and a US policy for the client.
What about GDPR?
If you are in the EU, you are subject to GDPR. Ensure your policy covers “Privacy Fines” (where insurable).