Liability insurers regard any US exposure as material and therefore all known exposures should be disclosed. The exposure may arise through: (a) having employees and/or representation in the US; (b) products exported to the US; (c) US business trips. The concern has its origin in: (i) strict liability in many states; (ii) jury awards; (iii) an established contingent fee system (lawyers work on a ‘no win, no fee’ basis); (iv) punitive damages awards; (v) liberal interpretations of policies; (vi) reluctance to take contributory negligence into account.