A global Professional Indemnity program is designed to coordinate insurance across multiple countries rather than relying on a single policy for every exposure.
A typical structure can involve:
- an Australian master policy
- locally admitted policies in countries where required
- agreed limits and deductibles
- coordination between local and master policies
- difference-in-conditions or difference-in-limits protection where available
The structure depends on the countries involved, ownership arrangements, local law, insurer capability and the engineering group’s activities.
A global program can be useful where an engineering firm has:
- overseas subsidiaries
- permanent international offices
- local employees
- substantial overseas revenue
- long-term international contracts
It is more complex than simply adding ‘worldwide’ territory to an Australian policy.
Engineering firms expanding internationally should review the insurance program before overseas entities or major contracts are established so local requirements and master-policy protection can be coordinated from the outset.
