Insurance is a critical tool for managing risk—when it works. Let the insurance buyer beware, however, that it doesn't always work equally well everywhere. Coverage problems regularly surprise multinational companies that require property insurance in remote locales around the world. Cynics have compared global property insurance to cell phone service: Depending on where you are, your experience may vary. By a lot.

Worse, bad choices in global insurance coverage may remain hidden until a remote location suffers a fire, flood, hurricane, earthquake, cyberattack, or other catastrophe. Only in such a crisis scenario does the company discover how many strings are attached to the insurer's promise to pay. The insured business may unexpectedly face not only coverage gaps, but also unanticipated taxes, regulatory scrutiny, delays in claims payments—and, ultimately, extended business interruptions.