Core Viewpoint - A significant compensation case involving Zurich Insurance (China) highlights the importance of commercial general liability insurance for companies operating in international markets, particularly in mitigating complex risks and potential legal disputes arising from product-related incidents [1][5][7]. Group 1: Case Summary - A 6-year-old boy in the U.S. ingested a battery from an air conditioning remote control, resulting in permanent gastrointestinal damage, leading to a settlement of $40 million (approximately 287 million RMB) between the insured and the plaintiff [1][5]. - Zurich Insurance (China) is responsible for a compensation amounting to 141.28 million RMB, as the case fell within the coverage of the commercial general liability insurance policy [1][5][6]. Group 2: Insurance Mechanism - The case utilized a "base layer + excess layer" insurance model, common in the U.S. and European markets, which helps companies manage unexpected large compensation claims [6][7]. - The excess layer insurance provides coverage for amounts exceeding a predetermined threshold, allowing companies to lower their basic insurance premium costs while ensuring protection against extreme risks [6][7]. Group 3: Industry Insights - The incident underscores the complex risks faced by companies expanding overseas, which can lead to significant financial losses due to legal disputes [7]. - Companies are advised to carefully select insurance products that align with the legal characteristics of their target markets and their specific product risks, ensuring adequate coverage [7].