Public Liability Insurance outside UK

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S

SussexBiz

  • #1
    My company very occasionally does short periods of work abroad, for example in Europe and the USA. In theory we should have Public Liability Insurance to cover us for accidental damage and injury caused when working at customer's premises (note we do not deal with "the public"). We are currently covered for UK based work.

    We are struggling to get affordable PL insurance. We are being quoted cripplingly high premiums (ten times the UK based one = £5K p.a.) even though we hardly ever work in the USA. The quoted premiums seems to assume that we are constantly working there for extended periods and I cannot get anywhere on this point (have had several quotes now).

    Has anyone ever had to consider PL cover for temporary work abroad (particularly the US which seems to be the real issue). Does anyone have any suggestions - is there such a thing as temporary PL insurance so that we only have to pay for the occasional week when we are working abroad?
     
    T

    TheGuru2010

  • #2
    SussexBiz said:
    My company very occasionally does short periods of work abroad, for example in Europe and the USA. In theory we should have Public Liability Insurance to cover us for accidental damage and injury caused when working at customer's premises (note we do not deal with "the public"). We are currently covered for UK based work.

    We are struggling to get affordable PL insurance. We are being quoted cripplingly high premiums (ten times the UK based one = £5K p.a.) even though we hardly ever work in the USA. The quoted premiums seems to assume that we are constantly working there for extended periods and I cannot get anywhere on this point (have had several quotes now).

    Has anyone ever had to consider PL cover for temporary work abroad (particularly the US which seems to be the real issue). Does anyone have any suggestions - is there such a thing as temporary PL insurance so that we only have to pay for the occasional week when we are working abroad?
    Click to expand...

    Hi Sussex,

    With the quotations that you have been getting have they asked what % of your turnover comes from work abroad? if not then they are not rating the risk appropiatly, we have some clients that do work abroad and its charged on this basis.

    Drop me a PM if you would like us to provide some premiums
     
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    S

    SussexBiz

  • #3
    I thiink you have pinpointed our problem. They quote based on the percentage turnover that we get from abroad - which bears no relation to how long we physically spend abroad. Almost all our work is conducted over the internet (typically supplying documents or software). Probably no more than 1-2% of our work is physically based abroad.

    The cover we are interested in is for accidental damage and injury caused when (very occasionally) we work at customer's premises abroad. My understanding is that is part of Public Liability Insurance. Where is the risk if we are working over the internet?

    Surely this is not an unusual situation - lots of companies supply internationally over the internet? Do they pay these excessive PL premiums? Or do they just not bother with the insurance?
     
    Upvote 0
    T

    TheGuru2010

  • #4
    SussexBiz said:
    I thiink you have pinpointed our problem. They quote based on the percentage turnover that we get from abroad - which bears no relation to how long we physically spend abroad. Almost all our work is conducted over the internet (typically supplying documents or software). Probably no more than 1-2% of our work is physically based abroad.

    The cover we are interested in is for accidental damage and injury caused when (very occasionally) we work at customer's premises abroad. My understanding is that is part of Public Liability Insurance. Where is the risk if we are working over the internet?

    Surely this is not an unusual situation - lots of companies supply internationally over the internet? Do they pay these excessive PL premiums? Or do they just not bother with the insurance?
    Click to expand...

    I would never advise to go without insurance - especially when its the USA, what trade is it you conduct?
     
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    T

    TheGuru2010

  • #6
    SussexBiz said:
    > I would never advise to go without insurance

    And we would be happy to pay premiums that bear some relation to the risk.

    Would you pay £5000 PL insurance premium for 1 week's work?
    Click to expand...

    Who is your current insurance provide?

    If you let me know your trade exactly i could have a quick calla round to see if there are any underwriters that will look at it on a diffrent stance.
     
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    N

    nigelessence

    Free Member
    Dec 7, 2010
    6
    1
  • #8
    I have a very similar problem.

    I am a UK based company, involved in software products and services, and most of my work will be done in UK. But my contracts will often be to provide services to US companies, with the contract stating Texas jurisdiction. So > 50% revenue will be from US.

    Most work will be done in UK, with communication by internet. But I will also be going to US for meetings on client premises.

    Do you know of any brokers who can provide suitable cover? I have not been successful in my recent searches.
     
    Upvote 0
    Simply Business

    Simply Business

    Free Member
    Dec 1, 2009
    661
    72
    London
  • #11
    Hello Guys,

    Just to give a bit of background as to why the majority of insurers are either unwilling or extremely reluctant to provide cover outside the UK / EU. It's all down to legal systems. The idea being if your company is unfortunate enough to be involved in a public liability claim in the UK - it will fall under UK laws and can be dealt with as standard by the insurers claims + legal departments. If a claim occurs oversees (USA for instance) then the claim will be subject to the relevant country's legal systems which can vary massively when compared to the UK. There is also the added cost of having a claims handler / loss adjuster visiting the site to carry out their report.

    I work for a business insurance broker and in the past I have covered a client for public liability and professional indemnity whilst they are working in Hong Kong - we were able to do this as we knew the risk's fully which allows us to tailor a policy to cover exactly what they are doing. It has a big impact on the quotes on how long is spent outside the UK- so if you are only spending a small amount of time that will be reflected in the quotes.

    If you would like to discuss the options that are available to your company please feel free to contact me via http://www.simplybusiness.co.uk/social/online-customer-support

    Please feel free to contact me if you have any queries or questions.

    Kind Regards

    Tim
     
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    L

    lockyer

  • #12
    Jappie,

    The issue here isn't that they are working outside the UK, but that it is specifically North America. With all due respect it is relatively easy to get cover for Hong Kong, as there litigation system is very similar to ours due to it being an ex colony.

    But the USA is a whole different ball game, due to the ultra litigous nature of their society.
     
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