Worldwide Liability Extension Clause

Purpose

Since AHB clause 7.9 excludes liability claims arising from foreign loss events by default, any cross-border activity requires a separate worldwide extension. This extension lifts the base exclusion for temporary stays abroad, for example business trips, installation work, trade fair participation or private travel, ensuring that resulting losses remain covered under the domestic policy.

Effect and limits

Cover is usually limited to temporary stays; a permanent business establishment abroad instead requires a locally admitted policy, as many jurisdictions prohibit non-admitted insurance for domestically situated risks. Within the granted worldwide cover, certain jurisdictions – above all the United States and Canada – are often carved back out through a separate exclusion, so the actual geographic scope of cover must be checked in each case.

Negotiation and practice

Internationally active businesses should negotiate the duration and scope of permitted foreign stays and clarify whether, and in which target countries, an additional locally admitted policy is required. The interaction with the USA/Canada exclusion warrants particular scrutiny, since businesses with regular North American activity could otherwise be caught out by cover that appears worldwide but is not.