Jurisdiction when working with a client in the US

[StephenPJones]

I am setting up as a sole trader based in the UK providing web services and consultancy. I have a potential client in the US who has asked me to look after their site for them moving forward. I am taking professional indemnity which covers me in the UK only.

My question - If the US client brought a claim against me for any reason, would this be UK Jurisdiction, and hence covered with my PI?

Thanks in advance

 

[Newchodge]

It depends what is in your contract. Even if it is England and Wales jurisdiction it may not mean you would be covered by your UK policy - you would need to confirm that in writing with your insurance company.

 

[fisicx]

What sort of claim?

You are worrying overly about legal action. The chances of it happening are very very low.

 

[Newchodge]

What sort of claim?

You are worrying overly about legal action. The chances of it happening are very very low.

But, sadly, increased if the client is in the US, which has a litigious reputation

 

[AvantageBroker]

I am setting up as a sole trader based in the UK providing web services and consultancy. I have a potential client in the US who has asked me to look after their site for them moving forward. I am taking professional indemnity which covers me in the UK only.

My question - If the US client brought a claim against me for any reason, would this be UK Jurisdiction, and hence covered with my PI?

Thanks in advance

Jurisdiction is not the only condition on a PI policy as geographical location of works would also be restricted to UK in your instance. Your insurer/broker will need to be notified of turnover generated from the USA as it most likely wont be covered. Therefore, if a claim were to arise from the above, you would have no cover.

 

[Socio South West]

In a previous life I agreed an exclusion to selling to the USA to get my PL cost vastly reduced owing to the litigious nature of doing business with the USA.

As others have said, the likelihood of legal action is extremely slight: In connection with your other thread on Start Up space the way forward is to incorporate, and should you be on the wrong end of a claim any time you can liquidate the company.

 

[Frank the Insurance guy]

Once trading in the USA you are always at risk of US court action, even if your contract states the contract is subject to UK Jurisdiction!

As advised above, you must declare the USA turnover to your insurer. Even if you only need cover for claims made under UK Jurisdiction.