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Rob Selnes Direct 604.443.3535 Email rob.selnes@marsh.com Marsh Canada Limited - Calgary Angus Smith Direct 403.476.3472 Email angus.m.smith@marsh.com

geotechnical or construction firm to successfully contract out of decennial liability and other forms of strict liability, but some engineers and geoscientist professional liability insurers in Canada and London can modify the firms’ global annually renewable professional liability policies for work in regions with some form of civil liability. If such modification is available, the coverage is generally granted by policy endorsement and by way of a scheduled project list. (Coverage for TPA and CCPA requirements can easily be arranged in the local Australian professional liability marketplace.) Achieving Compliance in Foreign Markets In Canada, engineering, geotechnical and construction firms are accustomed to providing evidence of professional liability with “each claim/aggregate” limit requirements. But foreign contracts often call for evidence of professional liability with “any one claim” limit requirements. As most Canadian insurers are restricted from offering this “un- aggregated” coverage, many firms elect to purchase a “top and drop” layer of coverage, which responds when a claim has depleted the underlying tower of insurance and allows for the policy to be subsequently triggered on an “any one claim” basis, subject to the limit of the “top and drop” layer. This coverage is available for projects located outside of Canada. Many territories also require firms to provide evidence of professional liability insurance written through local admitted insurers in order to comply contractually with local/compulsory requirements unique to the specific country. There are multiple solutions available to firms in this situation, ranging from securing a local “fronting policy” and using the global practice policy as reinsurance, to purchasing a separate local project policy, or using insurers who are admitted in a wider range of jurisdictions. Finding the Right Insurance and Risk Management Solutions Finding the right solutions—from modifying existing policies and adding new policies to securing local admitted insurance—requires expert knowledge of the construction industry and relationships in the global insurance marketplace.

Managing professional liability risk and contractual compliance across multiple jurisdictions can be a difficult process. To build an effective insurance and risk management program, engineering, geotechnical and construction firms should work closely with their insurance advisers to identify all applicable codes and statutes in the countries in which they operate. Even if the law of the contract is not the law of the country where the project site is situated, Canadian firms must still be aware of these liabilities. v Marsh provides insurance services as part of APEGBC’s Member Affinity Program. With engineer insurance advisors and placement specialists serving clients in more than 100 countries around the world, Marsh can help members navigate the global landscape and thrive as they expand their global footprint.

Marsh is one of the Marsh & McLennan Companies, together with Guy Carpenter, Mercer, and Oliver Wyman. Copyright © 2017 Marsh Inc. All rights reserved. The opinions contained in this article are those of Marsh and not necessarily those of APEGBC. This article is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on Marsh’s experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors.

For information, contact: Marsh Canada Limited - Vancouver Benjamin Kent Direct 604.692. 4838 Email benjamin.kent@marsh.com

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