Insurance and Risk Management Issues Associated with Foreign Operations

As hydro companies continue to seek out new business opportunities, they are increasingly looking outside the US. Subsequently, these hydro professionals are faced with an array of insurance and risk management issues unlike those they may be familiar with in the US. This article will address several of the most frequently asked questions which concern the gamut of hydro companies - including project developers, contractors and consultants - who become involved with work outside the US. Without question, the need for more electric capacity in developing countries has created business opportunities for a wide range of hydro companies. As stated in the 1996 Annual Report of The International Energy Agency, "hydropower is the foundation of rural economic development. The areas supplied with electricity from hydropower are ... hard to reach with large national grids and ... have suffered from the lack of or shortage of electricity," Furthermore, it is well known that at one time, most of the work conducted (by US-based companies) outside the US was done so by the largest contractors and developers. It is evident now that even the smallest hydro companies can successfully compete based on their particular expertise.