Professional indemnity and offshore design work: what to ask your broker
The objection most likely to kill an offshore engagement is insurance. It deserves a real answer, and the only person who can give it is your broker.
Why this question matters
A professional indemnity policy responds to claims arising from the insured's professional services. When part of the work behind those services is prepared by a third party — offshore or onshore — three questions arise: whether the policy covers work subcontracted by the insured; whether it covers work performed outside the territorial limits; and whether the insured's own review and sign-off is sufficient for the work to be treated as the insured's professional service.
How the NexGenus model is designed around it
We are production capacity, not a certifier. Every deliverable is prepared under the direction of your registered practitioner, and the certifying act — the declaration, the signature, the Regulation 126 certificate — stays with the person who holds the registration and the policy. That is the same position as an in-house drafter or a local subcontract drafting bureau, and it is the position most policies are written for. We hold our own public liability and professional indemnity cover for our services and provide certificates of currency on request. What we will not do is tell you your policy responds.
Seven questions for your broker
- Does my policy cover professional services where part of the work is prepared by a subcontractor under my direction and review?
- Does it distinguish between onshore and offshore subcontractors? Are there territorial or jurisdictional limits on where work is performed, as distinct from where the project is?
- Is there a condition requiring subcontractors to hold their own insurance, and to what limit?
- Does the policy require me to review and approve subcontracted work before it is issued? What does "review" need to look like?
- Are there exclusions for work performed by unregistered persons where registration is required — and how does the direct-supervision exemption interact with that exclusion?
- Does my policy's definition of "professional services" include the supervision of others, and is that supervision itself insured?
- If the provider holds its own PI, does my insurer recognise it, and does anything need to be endorsed on my policy?
What to put in the contract
Whatever the answers, the contract with the provider should state who supervises, who signs, whose policy sits behind the signature, the provider's own insurance and certificates of currency, IP assignment, confidentiality, and the data-handling model. We agree all of this in writing before any engagement outside the prescriptive envelope, and we will join the call with your broker.
Start with a pilot, not a headcount.
One cladding setout pack, one tender take-off, or twenty wall panel drawings. Fixed fee, a named Australian reviewer, and a first-pass-yield number you can check. Convert to a dedicated seat when the work proves itself.