International Insurance Chris MacKinnon RIBA Insurance Agency

International Issues UK based policies Project policies Fronting insurance Local insurance Contracts and Appointments

UK Insurance Most policies cover most locations but problems remain Basis of Insurance Cultural and business practice Contract conditions

Basis of Insurance UK is ‘claims made’ other countries are ‘losses occurring’. Some countries have no tradition of annual insurance but rely on project based insurance

Project Insurance Available in UK market for most parts of the world. Can be arranged annually or up to 10 years. Common in Mediterranean countries and Middle East. Can include all consultants to spread cost.

Business Practice Cultural and business issues may dictate approach taken Regulation may require local insurance is used often in conjunction with laws to protect the local financial services industry Usual solutions are fronting and local policies

Fronting Insurance Common in Middle East. Provides locally issued policy from an approved insurer. Risk is transferred back into the global program. Fronting policy sits ‘in front’ of the global.

Local Insurance Some countries require risk to be retained and do not permit risk transfer Usually a low limit is purchased with UK insurance sitting above the local policy Can be linked to registration requirements for the local professional bodies.

Global Solution Common position is to minimise the levels of insurance purchased outside UK and use global policy to back up the cover. Difference in limit. Difference in conditions.

Contracts and Appointment Conditions vary significantly and are usually bespoke in form Always take legal advice Contracts in the oil and gas sector are often particularly onerous

Contracts Continued Performance Bonds Indemnities including fitness for purpose Client named on insurance Indemnity to principal clause Waiver of subrogation rights

Any Questions Chris MacKinnon AJ Gallagher