Locally admitted insurance is insurance issued by an insurer authorised to write that class of business in the country where the risk is located.
An Australian engineering firm may need a local policy where the overseas jurisdiction restricts non-admitted insurance or where a client, regulator, subsidiary or project contract requires locally issued cover.
This can be relevant where the firm:
- opens an overseas office
- establishes a local subsidiary
- employs staff locally
- takes on significant long-term projects
- contracts directly through an overseas entity
- must satisfy local insurance or tax requirements
A local policy does not necessarily replace the Australian master policy. Larger engineering firms may use both as part of an international insurance program.
The need for locally admitted insurance is country-specific. It should not be assumed that the same arrangement works across an entire region.
Before establishing a permanent overseas presence or accepting a major foreign contract, check the insurance, regulatory and tax position for that particular country.
