The jurisdiction of many ‘worldwide’ policies excludes USA and Canada as standard. This is because the US and Canada are far more litigious than the UK, and that makes insurers nervous.

Despite the increased risk of a lawsuit, if you do have US clients you can still get the cover, albeit at a higher cost. The greater the chance of a claim, the more they’ll charge to cover it.

US legal costs are considerably higher. Not only can a lawyer cost a fortune, but a UK based insurer appointing a US based legal expert is a nightmare and will increase the cost to you. Each of the 52 states in America have their own local laws, which complicates the legal system further and subsequently increases legal costs.

When working with international clients, having a written contract becomes even more important so things don’t get lost in translation. If you work with an American or Canadian client and the contract is written in their local law, you will need a PI policy to match.

Look for the phrase ‘Jurisdictional Limits’ or ‘Applicable Courts’ on your policy schedule. If it says ‘Worldwide’ you’re covered. If it says ‘Worldwide, excluding USA and Canada’ you’re not.

US cover can be added to your policy at any time during the policy period. We are able to quote for various limits depending on your requirements.

Whinney Insurance are experts in insurance. Discover how we can help protect your business from risk, with bespoke cover for your industry. Read more about Professional Indemnity cover here. Contact us now.