Political Risk
Political risk insurance is designed for businesses of any size that export, import, invest or finance activities outside their home country, under international contracts. Whether these activities involve a public entity or a private partner, cover is available for contracts, payments, transfer of receivables, deliveries, bonds and guarantees.
Companies can also insure their assets anywhere in the world (host country, other countries and, in some cases, the insured’s country of origin) without restriction of territory.
Policies consider political risk in its broadest sense; any event or decision of a political or administrative order, be it national or international, which can cause financial, commercial or economic loss to a business, including:
- Events: riots, civil commotion, strikes, wars (except for armed conflict among the five major powers, or nuclear warfare) and malicious acts committed in this context.
- Arbitrary decisions by a public entity: failure to comply with contract obligations or with an arbitration award, breach of contract, selective discrimination, boycott, etc.
- Political decisions: international, governmental or administrative, including decisions by a regional authority: embargo, boycott, revocation of license, selective discrimination, inconvertibility of local currency, general not-transfer of assets, in addition to losses covered by specific products e.g. confiscation, expropriation, nationalisation, deprivation.
Additionally, companies can take out commercial cover as protection from loss due to direct default by a private buyer, thus extending coverage to the full spectrum of political and commercial risks involved in his activities abroad.
Use the links below to find out more about political risks cover in relation to:
Exports
Imports
Investments
Contact
Sally Del Principe
0121 698 8029
s.delprincipe@perkins-slade.com
