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Insurance for UK firms with overseas offices is the set of UK extensions and local policies that cover premises, staff and liabilities outside the UK. A UK programme rarely covers permanent overseas operations on its own.
Part of: Commercial insurance
In short
UK office policies are usually written for UK premises and staff, with limited extensions for temporary travel. When a firm opens an overseas office, hires people abroad or seconds staff for long periods, it typically needs local property and liability cover, local employee cover such as workers' compensation, travel or expatriate cover, and a PI policy that extends to the overseas office's work. Many countries restrict non-admitted insurance, so local rules need checking country by country before relying on a UK policy.
A UK office programme is written for UK premises, UK staff and UK law. Once a firm opens an office abroad, seconds staff overseas or hires people who live in another country, three questions follow: does the UK policy extend there at all, does local law allow it to, and is local cover needed anyway. The answer is often a mix of extended UK cover for short trips and local policies for anything permanent.
Our overview of business insurance when expanding overseas covers the commercial side. This page focuses on the office firm: professional services, technology and similar businesses with a handful of overseas offices or staff, where the programme was built for the UK and is now being stretched.
| Cover | Typical UK position | Typical overseas need |
|---|---|---|
| Property and contents | Usually limited to UK premises named in the schedule | Local property policy or a scheduled overseas location |
| Business interruption | Linked to UK premises and UK income | Cover for income earned by the overseas office |
| Employers' liability | Compulsory for most staff based in Great Britain | Local workers' compensation or employer's liability |
| Public liability | Often worldwide for temporary visits, excluding some jurisdictions | Local cover for permanent premises |
| Professional indemnity | Territorial and jurisdiction limits set in the schedule | Extension or local policy for overseas offices |
| Travel | Business travel policy for trips | Separate cover for long term expatriates |
Territorial limits. Each section of a policy defines where insured events must happen and, for liability, where claims can be brought. Our page on territorial and jurisdiction limits explains the difference. Many UK policies extend to temporary visits abroad but exclude permanent overseas premises or staff based there.
Admitted and non-admitted insurance. Many countries restrict insurance of local risks to insurers authorised in that country. The UK takes a similar approach: section 19 of the Financial Services and Markets Act 2000 sets a general prohibition on carrying on a regulated activity in the UK without authorisation or exemption. Rules elsewhere vary widely, and some countries treat non-admitted cover as unlawful or tax it differently, so a UK policy that names an overseas office may not be enforceable or compliant there. This is usually checked country by country with local advice.
Tax. For UK Insurance Premium Tax, HMRC guidance on establishing the location of a risk says buildings and contents are located where the property is situated, and for business policyholders other risks generally sit where the relevant establishment is. Other countries apply their own premium taxes on the same principle, which affects how premiums are split.
HSE's employers guide says employers do not need employers' liability insurance under the 1969 Act for employees based abroad, but do need it if such an employee spends more than 14 days continuously in Great Britain. Staff based in Great Britain who travel abroad temporarily are usually covered by the UK policy, subject to its territorial limits and any excluded countries.
Staff based overseas usually need cover that meets local law. In many countries that is a state or private workers' compensation scheme rather than an employer's liability policy, and the rules on who must insure, and with whom, differ. US exposure is a common example; see US workers compensation for UK employees.
Business travel insurance covers medical costs, repatriation, baggage and disruption for trips. The FCDO explains that travel insurance could be invalidated by travelling against its advice. For higher risk destinations, firms sometimes add security support or kidnap, ransom and extortion insurance.
Professional indemnity needs separate thought. A UK PI policy may cover advice given from the UK to overseas clients but exclude work done by an overseas office, or exclude claims brought in the US or Canada. Our pages on cross-border PI for UK professionals and PI policy territory cover the detail. Some overseas regulators require locally issued PI, which then sits alongside the UK policy.
Public and products liability limits that are adequate in the UK may be thin in jurisdictions with higher awards; see public liability and US jurisdiction.
Illustrative only; not based on any real firm or claim.
A UK consultancy opens a small office in an EU country with eight local employees. Its UK package names only UK premises. It needs local property and liability cover, and compulsory local employee cover, while the UK PI policy needs extending to the overseas office's work.
A technology firm hires a developer who lives and works in another country. There are no premises, but local employment law, workers' compensation and possibly local tax rules still apply. The UK employers' liability policy may not respond for someone based abroad.
A firm sends two staff from the UK to a client site overseas for a year. Business travel cover may have a maximum trip length, and the UK employers' liability territorial limits may not cover long periods abroad. Expatriate medical cover and local employee cover may be needed.
Apex arranges UK commercial insurance programmes that extend to overseas offices and staff, coordinating local cover where needed; a broker reads every enquiry.
Usually not unless the overseas premises are specifically named and the territorial limits extend to them. Even then, the country may require insurance from a locally authorised insurer, so a UK policy alone may not be compliant. Many firms use a local policy for the overseas office, sometimes coordinated with the UK programme.
HSE guidance says the UK compulsory requirement does not apply to employees based abroad unless they spend more than 14 days continuously in Great Britain. Staff based in Great Britain who travel temporarily are usually covered by the UK policy. Staff based overseas usually need cover under local law, such as workers' compensation.
Non-admitted insurance is cover provided by an insurer that is not authorised in the country where the risk is located. Many countries restrict or prohibit it for some classes of insurance, or tax it differently. Rules vary, so a broker usually checks each country before relying on a UK policy for overseas risks.
Not necessarily. UK PI policies often cover advice given from the UK, with defined territorial and jurisdiction limits, and some exclude claims in the US or Canada. Work done by an overseas office may need a policy extension or a local policy, particularly where a local regulator sets its own PI requirements.
Often not. Business travel policies commonly have a maximum trip length and are designed for short trips. Staff seconded abroad for months or years may need expatriate medical cover, local employee cover and confirmation that the UK employers' liability policy responds, subject to its terms.
Send us your current schedules or renewal pack and we will review the whole programme and tell you plainly what to keep and what to change. No fee and no obligation. Or call 0117 325 0027.
Book a programme review Get a quoteApex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information, not advice on your individual circumstances, and it does not guarantee that cover will be available or on what terms.
