Territorial limits and jurisdictional limits deal with different aspects of an insurance policy.
Territorial limits generally describe where the professional services can be performed.
Jurisdictional limits generally describe where a claim can be brought or where legal proceedings can be commenced.
For example, a policy might permit engineering work to be performed worldwide but restrict or exclude claims brought in particular countries or legal systems.
Both need to be checked when an engineer works internationally.
Relevant factors can include:
- where the engineer is located
- where the project is located
- where the client is based
- the contract’s governing law
- the nominated dispute forum
- where a claim could realistically be commenced
A worldwide territorial limit should therefore not be treated as confirmation that every overseas claim is covered.
The exact wording varies between insurers and should be reviewed before undertaking material overseas work.
