Potentially, but an Australian policy should not automatically be assumed to provide complete cover for an overseas subsidiary.
The insurer will usually want to know:
- the country of incorporation
- ownership structure
- local revenue and activities
- engineering disciplines
- local employees
- project values
- contracts and governing law
- whether local insurance is compulsory
An overseas subsidiary may be able to be included as an insured entity under an Australian master policy, subject to the insurer’s agreement.
However, the local jurisdiction may still require a locally admitted policy or local evidence of insurance. Tax, regulatory and claims-payment restrictions can also affect whether an Australian policy is sufficient on its own.
Where an engineering group operates through overseas entities, the insurance structure should be reviewed as a group rather than adding the subsidiary informally after work has already commenced.
