General Information
STRUCTURE
The International Liability Insurance (ILI) program is a fronted insurance program. A fronted program allows Caterpillar to pay an insurance carrier to utilize the carrier’s locally admitted policies within each country. The policy year begins on January 1 and ends on December 31.
There is no risk-transfer of losses to the carrier. Losses are funded through Caterpillar’s self-insured program and supported by outside Corporate Policies. This infers that loss avoidance and control are important.
Premiums collected are used to pay our carrier for utilizing local policies, but the majority of premiums are paid to Caterpillar Insurance Company Limited (CICL). CICL pays claims from premiums collected.
Claims are administered by the carrier. Currently, our carrier is AIG. AIG will work with the Caterpillar Legal Department if needed to settle any claims.
COVERAGE
Be sure to advise the Corporate Property and Casualty group of insurance needs before proceeding. In some cases, additional coverage above and beyond the ILI program and Caterpillar Corporate Liability Program are needed. However, most insurance needs can be met through the ILI program and the Caterpillar Corporate Liability Insurance Program allowing the need for local policies to cease.
Auto Liability
Auto liability under the ILI covers owned and leased vehicles, as well as liability caused during operation of rented or borrowed vehicles while driving on company business.
General Liability
General liability under the ILI covers property damage or bodily injury to the third parties arising out of Caterpillar’s business activities.
Employer’s Liability
Employer’s liability under the ILI covers an insured’s responsibility to pay damages to employees for personal injuries sustained in the course of employment. In general, an accident out of the course of employment, unless otherwise proven, will be found to have arisen out of that employment.
Deductible
There is no deductible associated with the ILI program. Losses are funded through Caterpillar’s self-insured program, supported by outside Corporate Policies.
Limits
Current limits for the ILI program are $5 million for general liability and $10 million for products liability. Additional coverage can be evidenced by the Caterpillar Corporate Liability Program.