International Contractor Insurance Checklist: What You Need Before You Deploy

Mobilizing to an international project is complex. Between logistics, staffing, and contract compliance, insurance is often the last thing on a contractor's mind — until something goes wrong. Use this checklist to ensure you're fully protected before your team sets foot overseas.

Checklist Overview

Before you deploy to any international project, verify you have:

1. Workers' Compensation for Overseas Workers

This is the most critical coverage and the most frequently missed.

If your project is under a US government contract (DoD, USAID, DoS, etc.):

You are required by federal law to carry Defense Base Act (DBA) insurance. This applies to all employees — US citizens, local nationals, and third-country nationals. Your subcontractors must also carry DBA.

If your project is a commercial contract (oil & gas, private construction, mining, etc.):

Your standard US workers' comp policy does not apply overseas. You need Foreign Voluntary Workers Compensation (FVWC). While not federally mandated, it's typically required by commercial clients and is essential to protect against massive uninsured liability.

**Red flag:** If your current workers' comp carrier says "you're covered internationally," ask to see the policy language defining the coverage territory. Most stop at the US border.

2. General Liability for International Operations

Standard US general liability policies contain a "coverage territory" limitation that typically includes only the US, its territories, and Canada. Claims arising from your overseas operations — a local worker injured at your jobsite, property damage to a client facility, etc. — will be denied.

**You need:** A foreign general liability policy or a domestic GL with a worldwide coverage territory endorsement.

Coverage limits to verify:

3. Marine Cargo for Equipment Shipments

Every shipment of equipment, tools, or materials to an international jobsite is exposed to loss — ocean perils, port theft, handling damage, customs delays, piracy. Standard property policies typically exclude property "in transit" or limit coverage to domestic locations.

**You need:** A marine cargo policy covering all modes of transport (ocean, air, overland).

**Consider:** An open cargo policy if you have multiple shipments per year. It automatically covers all shipments without requiring individual certificates.

4. Contractor's Plant and Equipment (CPE)

Your marine cargo policy covers equipment in transit. What about equipment once it arrives at the jobsite? Contractor's Plant and Equipment insurance covers your machinery and equipment at the project location against physical damage, theft, and breakdown.

This is especially important for high-value equipment deployed to regions with limited security infrastructure.

5. War Risk and Political Risk (Region-Dependent)

Most commercial property, cargo, and casualty policies contain war exclusions. If your project is in a region with elevated conflict risk, political instability, or a history of expropriation, you need specialty coverage.

High-risk regions typically requiring war risk coverage:

Coverage types to consider:

6. Professional Liability (If Applicable)

If your company provides design, engineering, project management, or other professional services as part of your overseas contract, you need professional liability (E&O) insurance. Standard GL does not cover errors or omissions in professional services.

This applies to:

7. Project Mobilization Coverage

The period from contract award to active project commencement — when equipment is being shipped, personnel are traveling, and materials are being staged — is often poorly covered by standard programs.

Project mobilization insurance covers losses during this transition phase, including equipment in transit, temporary staging, and early-project property exposures before your primary project coverage attaches.

Common Insurance Gaps to Avoid

Gap 1: Assuming domestic policies apply overseas.

They don't. Workers' comp, GL, and property policies all have geographic limits. International operations require international policies.

Gap 2: Skipping DBA for subcontractors.

As a prime, you're responsible for ensuring your subs carry DBA. Non-compliant subcontractors expose your prime contract to liability.

Gap 3: Not getting project-specific certificates.

Many international clients and project owners require certificate evidence of specific policies. General certificates may not satisfy their requirements.

Gap 4: Underestimating war risk in "stable" countries.

Political conditions can deteriorate quickly. Review country-specific risk ratings with your broker before finalizing your insurance program.

How to Get Everything in Place

The fastest way to close all your international coverage gaps is to work with a specialist broker who focuses on international contractor insurance. A general commercial lines agency typically lacks carrier access, underwriting relationships, and product knowledge to properly cover international contractor risks.

At Contractors Choice Agency, we've been placing international contractor coverage since 2003. We can review your contract requirements, identify your coverage gaps, and deliver a complete international insurance program — typically within 5 business days of receiving your project information.

Get a no-obligation review of your international coverage needs →