Energy contractors working on international projects — drilling operations, pipeline construction, refinery maintenance, LNG facility builds — need general liability coverage that extends beyond domestic borders. Standard U.S. commercial GL policies have territorial limitations that can leave contractors uninsured for work performed in Latin America, the Middle East, West Africa, or Southeast Asia.
An international GL program for energy contractors typically includes a foreign voluntary workers’ compensation endorsement, international commercial auto, and controlled master program (CMP) structures that layer local admitted policies with a DIC/DIL umbrella. Here’s what the coverage looks like and where the gaps usually sit.
Key Takeaways
- Territorial gap: Standard U.S. GL policies exclude or limit coverage for work performed outside the U.S., its territories, and Canada
- Admitted policies required: Many countries require locally admitted insurance before contractors can work — non-admitted coverage is illegal in some jurisdictions
- DIC/DIL umbrella: Difference in Conditions / Difference in Limits policies fill gaps between local admitted policies and the master program
- Foreign workers’ comp: Voluntary coverage for employees working abroad — domestic workers’ comp doesn’t apply outside the U.S.
- Political risk: Expropriation, currency inconvertibility, and political violence can disrupt projects and trigger specialized coverage
For domestic liability structuring, industries like childcare face similar compliance-driven coverage requirements — see our daycare liability insurance guide for an example of how specialized liability programs are built to meet regulatory mandates.
Frequently Asked Questions
Does my U.S. general liability policy cover international projects?
Most U.S. GL policies limit coverage to the U.S., its territories, and Canada. Work performed in other countries requires either an international extension or a separate international GL program with locally admitted policies where required by law.
Disclaimer: This article is for informational purposes only. International insurance programs require country-specific structuring. Consult our licensed advisors for project-specific guidance.
Energy Contractor Insurance — Houston
Hotaling’s Houston office structures international GL, workers’ comp, and umbrella programs for energy contractors working across Latin America, the Middle East, and beyond.
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