Doing business in the US: top risks and how to insure against them

The United States is full of opportunities for Dutch businesses. But entering the American market comes with its own set of challenges. From sky-high liability claims to strict local regulations, operating in the US requires a different approach to risk management. In this article, Meijers Global & Specialty outlines the seven most common business risks in the US—and how you can protect your company with the right insurance solutions.

 Liability risk: the number one threat
The US is known for its litigious culture. Businesses are far more likely to be sued than in the Netherlands—and claim amounts are significantly higher. Product liability is particularly risky, as US importers are often treated as if they are the product’s manufacturer. Technology and consultancy firms are also vulnerable to claims due to errors or omissions. A comprehensive liability insurance policy is crucial.

Employer liability and workforce risks
Employers in the US are legally required to provide Workers’ Compensation insurance to cover workplace injuries and illness. Additionally, claims related to hiring discrimination, harassment, or wrongful termination are common. These can be covered with Employment Practices Liability Insurance (EPLI).

 Natural disasters and climate risk
From hurricanes to wildfires and floods, the US faces frequent natural disasters. These can severely damage property, halt operations, and endanger staff. Climate change increases the unpredictability of such events. Local insurance policies offer better, state-specific coverage for these risks.

Transport and assembly insurance
Unlike in the Netherlands, US insurers often separate transport and assembly risks. If damage occurs during on-site assembly (e.g. of machinery or installations), it must be covered under a local policy. Manufacturers of industrial machinery should take extra care here.

Cyber risks and data privacy
With strict US privacy laws, a cyberattack or data breach can lead to heavy fines, lawsuits, and reputational damage. A local cyber insurance policy tailored to US regulations is essential.

Compliance and contract management
Non-compliance with federal or state laws can lead to massive claims. US contracts often contain extensive liability clauses. Poorly defined liability or indemnity terms can have severe consequences. Meijers supports companies in reviewing and negotiating contracts and insurance terms.

Directors and officers liability (D&O)
Corporate directors can be held personally liable in the US. D&O coverage is possible but often expensive and complex. An A-Side DIC (Difference in Conditions) policy provides extra protection and helps maintain global business continuity without increasing personal risk exposure.

Local coverage plus master policy: a complete solution
With varying legislation across states, local policies are often required. Meijers, through the Worldwide Broker Network (WBN), ensures Dutch companies can access reliable local partners. We combine these policies with a global master policy to fill any gaps (Difference in Conditions / Difference in Limits), tailoring coverage to your business’s unique risk profile.

 QA

1. Do I need a local insurance policy when doing business in the US?
   Yes. In most cases, local insurance is required or highly recommended—especially for employment liability and on-site assembly risks.
2. How can I protect my business from liability claims in the US?
   You need a robust liability insurance policy with local coverage. Meijers advises on the right protection for your sector and state-specific risks.
3. What is the advantage of a master policy?
   A master policy ensures consistent global coverage and fills gaps that may exist in local US policies. It offers your business an extra layer of protection across jurisdictions.