To identify the territory of regulation and tax for an accident and sickness risk, consider:
1. The nature of the cover provided;
2. The location of the insured’s residence(s) or business establishment(s); and
3. (Personal accident for crew only) whether the policy relates to a specified aircraft or vessel. 

Accident and sickness (including group cover)
Personal accident for crew
Permanent health insurance
Loss of pilot licence

Accident and sickness (including group cover)

Accident and sickness insurance can be taken out either by an individual or a corporate entity. 

Where a corporate entity takes out a group accident and sickness policy to cover its staff the risk location is the territory in which the insured’s business is established. However, if individual employees are parties to the contract, i.e. they can independently make claims under the contract, the risk location is the territory or territories in which the employees are resident.

Where an individual takes out an accident and sickness policy the risk location is the territory in which the insured is resident.

If the contract covers more than one individual insured, and the insured persons are resident in more than one territory, it will have more than one risk location. Likewise, it will have more than one risk location if it is taken out by a corporate entity and covers employees at business establishments in more than one territory.

Personal accident for crew

A personal accident for crew policy is taken out by owners or operators of aircraft or vessels to cover their employees. 

The risk location is determined in the same manner as accident and sickness insurance above. 

Permanent health insurance

Permanent health insurance provides fixed term benefits to an insured in the event that they cannot work for a period of time or their employment is terminated due to illness or accident. This insurance may be taken out by an individual or by a corporate entity to cover its staff.  If the benefit is paid for more than 60 months it is long term business and must be written in the life market.

The risk location is determined in the same manner as individual or accident and sickness insurance above.

Loss of pilot licence

The risk location of insurance covering loss of licence due to injury or illness is determined in the same manner as individual or accident and sickness insurance above.

Definition of 'business establishment'

European Union (EU) legislation defines the term ‘establishment’. Outside the EU the term is not so well defined, so in the absence of any contradictory guidance, it is appropriate to follow the EU approach.

Examples of business establishments:

  • subsidiary companies 
  • branches of companies 
  • representative offices 
  • offices managed by businesses’ own staff 
  • tied selling agents 
  • factories and workshops 
  • mines and quarries 
  • oil and gas wells 
  • drilling platforms fixed to sea bed














Risk locator tool

Risk Locator | Establish the location of your risk

Frequently asked questions 

Introduction to Risk Location

What is risk location and why is it important ?

Introduction to risk location

Establishing the risk location

To help establish risk location please consider the questions provided via the link below

How to establish the risk location

Class of business guidance

To help you establish the risk location please consider the class of business

Class of business guidance 

Risk Location Examples

The interaction of different territorial rules can make a given scenario complex. Applying the principles set out will assist market participants in establishing the risk location.

Risk location examples

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Lloyd's International Trading Advice (LITA)

t: +44 (0)20 7327 6677