International Technology Liability Insurance

What makes this risk different?

Underwriters need to understand the product or service, who relies on it and what could happen if it fails. For this activity, describe sales destinations, US and Canadian revenue, local entities, distributors, installation work, product end use, contracts and required insurance limits. Separate your own design and delivery responsibilities from those of component suppliers, installers, customers and subcontractors. Give the insurer a realistic account of maximum potential loss and any past claims or incidents.

Insurance questions to review

• Public and products liability: alleged third-party injury or property damage from operations, products and completed work, subject to exclusions and declared activities.
• Technology professional indemnity: defined professional services, software and advice exposures, often on a claims-made basis with notification and retroactive-date conditions.
• Cyber: incident response, privacy and covered network events, which may differ from a product defect or implementation error.
• Other cover: recall expense, property, stock, transit, management liability or crime where the actual operation warrants it.

Check limits, excesses, aggregate limits, exclusions, territorial and jurisdiction clauses and any contractually required insured parties. No item listed here is automatically included.

Illustrative exposure

Hypothetical example: A claim is brought overseas after a device supplied in Australia causes damage. Jurisdiction and territorial clauses become critical. This example describes an exposure only; a claim outcome depends on the facts and policy.

Overseas sales and jurisdiction

Break down revenue and units by destination, particularly North America, and identify local distributors, subsidiaries, installation and after-sales work. Provide the governing law and jurisdiction in material customer contracts, any local insurance requirements and the location of stock or employees. A policy’s worldwide territory does not by itself answer which courts or legal costs are covered.

Discuss products liability, technology PI and cyber territorial clauses separately. Some overseas activities may require locally admitted insurance or a different market approach. Consider the international insurance exposures and operating footprint before describing a program; an Australian certificate alone may not meet a foreign customer’s insurance requirements.

What to send for a quote

Provide a concise business and product description, turnover split by activity and country, principal contracts, customer industries, manufacturing and supplier arrangements, testing and quality processes, existing schedules and claims history. Where relevant, include technical documentation through a suitable secure follow-up channel.

Frequently asked question

Does worldwide cover mean every country and court is covered?

No. Read the territory and jurisdiction clauses separately.

See also technology product liability, our technology insurance guide and existing quote areas.