Thanks to the Internet and telecommunications, the globe is shrinking, figuratively. Thus, many risk managers — especially those with far-flung foreign operations — no longer focus parochially on loss exposures inside the U.S. While the tort explosion has detonated loudest in this country, companies must ponder the possibility of foreign claims. This is doubly true as commentators see some foreign jurisdictions becoming almost as lawsuit happy as America. Japan, for example, faces a shortage of attorneys and is trying to get more students into law schools. Be careful what you wish for!

Risk managers must assess whether or not they have liability exposures abroad. If so, their insurers or adjusting companies must be able to service claim-handling needs in foreign countries. Increasingly, risk managers have foreign loss exposures and, hence, claims abroad. Consider the following scenarios:

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