Cyber/Media Legal Insurance for a Nonresident US LLC

[MarkusCostigan]

Hello, Has anyone ever insured their non-resident US LLC for media content liabilities protection, cyber liabilities or other forms of insurance? As non-residents, can I access the same policies as resident US LLCs? Are the premiums higher?

Thank you.

 

[daniels27]

I would advise to use a US address. But in theory, you can access the same policies, some insurers may not want to deal with you or apply higher premiums if they see a higher risk. Please note that normally, insurers are only allowed to insure local risk. I.e. you won't be able to insure a UK warehouse with a US insurer, unless they go through their UK branch etc. This is due to local regulations. In most countries, insurance is VAT exempt but there is a stamp duty applied to insurance with some exceptions for health insurance.

 

[MarkusCostigan]

I understood, thanks. What might be some other interesting jurisdictions with a major insurance ecosystem for non-resident companies?

 

[daniels27]

MarkusCostigan said:
I understood, thanks. What might be some other interesting jurisdictions with a major insurance ecosystem for non-resident companies?
Click to expand...

It generally is not possible to insure foreign assets. Hence, there is no such ecosystem. You can only get insurance from an insurer in the same jurisdiction as your residence / incorporation. Physical assets can only be insured in the jurisdiction of their location. Among the few exceptions are travel insurance and health insurance up to some extent.

 

[MarkusCostigan]

Thank you. What if I wanted to insure something digital? For example a social network website owned by the non-resident company.

 

[daniels27]

I guess it is the location of the company. Unless your workforce is elsewhere in which case this jurisdiction would be responsible.

 

[MarkusCostigan]

I was also asking in some old message, if in this case a non-resident US LLC managed and administered from Malta followed US or Maltese law. And in the event of a dispute, where would the court be held?

 

[daniels27]

MarkusCostigan said:
I was also asking in some old message, if in this case a non-resident US LLC managed and administered from Malta followed US or Maltese law. And in the event of a dispute, where would the court be held?
Click to expand...

Generally speaking it follows US law. However, under US law, you probably chose to be tax exempt. Hence, for tax reason, it will only follow Maltese law (apart from some reporting requirements in the US). For disputes:

• If your company violates a law in the US, a US court will be responsible.
• If your company sells items in Uruguay and you do not pay VAT, a court in Uruguay will be responsible.
• If your company sells items to a company in Tajikistan under a contract signed between both companies that stipulates that Tajik is the place of jurisdiction, a Tajik court will be responsible.
• If your company has stock in a third party warehouse in the Philippines, any settlement in regards to this stock will, in absence of any different agreement, most likely be handled by a Philippine court.
• If your company sells item to Canadian customers and they get harmed because of negligence of your company, it will most likely be handled by a Canadian court.

As you can see, it is mainly a transaction issue. And the responsible court is the agreed place or in absence of it the place the transaction takes place. You can also check the United Nations Convention on Contracts for the International Sale of Goods which often defines the responsible court.
https://en.wikipedia.org/wiki/Unite...Contracts_for_the_International_Sale_of_Goods

 

[JohnLocke]

Can you explain how the jurisdiction for legal disputes involving a company is determined when operating under US law but claiming tax exemption, and when engaging in international transactions in places like Malta, Uruguay, Tajikistan, the Philippines, and Canada?

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[MarkusCostigan]

Thank you very much, you are very kind. At this point I can only ask you if I were to launch a social network site (therefore chances of cyber/media/content liabilities) as a resident of Malta. Would you open the company in Malta or a non-resident US LLC? (from a point of view of management agility in case of problems/litigations etc...)

Thank you.