Trade Nov-Dec Interactive - page 9

brokers are representing an interna-
tional client in each country, they
can perceive each other as competi-
tion. Bruce F. White, Account
Executive at JKJ&H, says, “In
contrast, JKJ&H analyzes global
insurance programs as a whole to
mitigate coverage gaps resulting
from poor communication and a lack
of cultural understanding.”
John Wright, Principal of JKJ&H,
notes, “The most common situation
we encounter in any international
transaction is that the local man-
agement group says, ‘We’re sure
that’s being handled by our interna-
tional department. When you ask
the ‘international department’, they
say, ‘We’re sure that’s being
handled at the subsidiary level’, but
no one actually asks the question.
In almost every face to face
meeting we’ve discovered a gap in
coverage that was assumed to be
handled differently.’
One example of this coverage gap
problem occurred five years ago.
JKJ&H was hired by a German
company to audit their insurance
policies. The German company had a
“FLEXA form property policy” – a
typical type of coverage in Germany,
covering fire, lightning, explosion
and aircraft. As JKJ&H reviewed the
policy they noticed that the German
FLEXA form also covered its U.S.
subsidiary’s $30million facility.
However, to be properly covered for
risks such as natural disasters, that
U.S. facility would need to conform
to the “best local standards” for the
state where the facility is located. In
its audit, JKJ&H found significant
German American Trade Nov/Dec 2013
John Wright, Bruce R. White,
and Julie Bartl lead the JKJ Team
Daniel Reck, John Wright,
and Bruce F. White lead the
JKJ & H International Team
Christian Hörtkorn,
Owner & Managing Director of
Dr. Friedrich E. Hörtkorn GmbH
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