Overseas engineering work may be covered by an Australian Professional Indemnity policy, but this should not be assumed without checking the policy.
Whether an Australian Professional Indemnity policy responds to overseas engineering work depends on the policy wording and the particular engagement.
Two provisions are especially important:
- territorial limits — where the professional services can be performed
- jurisdictional limits — where claims or legal proceedings can be brought
A policy may allow work to be performed worldwide while still restricting claims brought in certain jurisdictions.
The insurer may also consider:
- the countries involved
- governing law and dispute forum
- engineering disciplines
- project values
- overseas revenue
- local registration or licensing requirements
- whether a local policy is required
- USA or Canadian exposure
The safest approach is to disclose the overseas work before committing to the project and obtain confirmation of the insurer’s position where the exposure falls outside the firm’s normal activities.
