Opening an overseas office can change an engineering firm’s insurance needs significantly.
Before establishing the office, consider:
- the legal entity that will operate locally
- local professional registration requirements
- whether locally admitted insurance is required
- whether the Australian PI policy can include the overseas entity
- local employees and employment obligations
- local Public Liability, property, motor or workers compensation requirements
- contractual jurisdiction and project types
- tax and regulatory implications for the insurance structure
A permanent overseas presence is different from occasionally servicing an overseas client from Australia.
The business may need a local policy, a global insurance program or changes to the Australian master policy.
The insurance structure should therefore be reviewed before the office opens or the local entity signs contracts so that the Australian and local arrangements work together.
