Controlled Master Program – Covering Your Business Around The World

A Controlled Master Program (CMP) pairs a master policy issued in the United States with local (admitted) policies issued in foreign countries. The CMP is the ideal insurance solution for the risks faced by multinational companies that have established a physical presence outside the United States.

The CMP provides a separate policy of primary multinational insurance or difference in conditions/excess insurance when admitted policies are in place. It can include insurance for Property, Business Income, General Liability, Commercial Automobile and Foreign Voluntary Workers’ Compensation.

A Controlled Master Program offers the following distinct advantages over a patchwork of policies approach:

  1. Quality Protection: Allows a company to close insurance gaps with the difference in conditions/difference in limits provision of the master policy while meeting local country requirements. Insureds can purchase admitted insurance to gain access to unique insurances that are common in certain countries (e.g., extended products liability and pure financial loss) and existing terrorism pools.
  2. Financial Efficiency: Enables the company to coordinate the purchase of all multinational insurance policies through one carrier to achieve economies of scale that will eliminate duplications and likely reduce insurance costs. 
  3. Realize tax advantages: In most foreign countries, locally paid premiums are tax deductible, and loss payments are tax exempt. Ensure subrogation benefits by purchasing local insurance. Many countries require admitted insurance in order to subrogate a loss. This can potentially lower insurance costs. 
  4. Outstanding Service: Allows the insured to manage claims consistently with worldwide claims coordination. A CMP streamlines settlements by having the same insurer handle admitted and nonadmitted claims. Extend loss prevention programs and business practices with worldwide loss control coordination. A global network of loss control professionals can be well-versed in local regulations and U.S. standards.