Investments
Any business with assets in other countries, notably in emerging markets, can suffer as a result of abrupt government decisions or unforeseeable political violence. Risks can include confiscation, nationalisation, property damage during rioting or armed conflict, inability to obtain payment of invoices or transfer of dividends, partial deprivation or complete expropriation, various obstructions to smooth operation, selective discrimination, business interruption and even forced abandonment.
We can arrange cover for all the above risks, regardless of:
- the form of investment e.g. branch office, wholly-owned subsidiary, joint venture, concession, etc
- independence of their precedence (longstanding or recent)
- the nature of the assets cash or equivalent, shares, securities, buildings, plant, machinery, inventories and equipment under direct ownership or entrusted to the company under a leasing, operating or import agreement.
Impairment of assets – covers confiscation, expropriation, nationalisation. Deprivation/non-repossession covers can extend to forced abandonment, obstruction of business, selective discrimination and business interruption. These policies apply in the event of de facto or de jure deprivation of assets inflicted. They apply when:
- the host government expropriates the company, confiscates or nationalises its assets by a direct and immediate political decision
- the host government proceeds with a de facto deprivation of assets or prevents the client company from repossessing, repatriating or re-exporting its assets
- a decision or measure of selective discrimination enacted by the host government or a public entity which refuses to honour a contract either temporarily or permanently and prevents the company from conducting or compels it to abandon its activities or causes loss due to business interruption.
Property damage – the cover applies to property damage caused by a political event such as war, riots, strikes, civil commotion or malicious acts committed in this context.
Non-payment-transfer – this cover applies when a government decision, legislative or administrative measure, enacted in the country in which a company has made an investment, leads to the non-payment and/or non-transfer of receivables, dividends or royalties owed to the company in relation to this investment or to the profit realised in the event of resale.
Contact
Sally Del Principe
0121 698 8029
s.delprincipe@perkins-slade.com
