Political Risk
Political Risk Insurance provides comprehensive and cost-effective risk mitigation to protect against the loss of tangible assets, investment and earnings resulting from political perils.
Political risk insurance is a type of insurance that can be taken out by businesses, of any size, against political risk—the risk that revolution or other political conditions will result in a loss.
Political risk insurance is available for several different types of political risks.
- Political violence, such as revolution, insurrection, civil unrest, terrorism or war;
- Governmental expropriation or confiscation of assets;
- Governmental frustration or repudiation of contracts;
- Wrongful calling of letters of credit or similar on-demand guarantees;
- Business Interruption; and
- Inconvertibility of foreign currency or the inability to repatriate funds.
Political Violence
Political Violence cover includes physical loss of or damage to assets as a result of riots, strikes, terrorism, civil commotion, rebellion or insurrection.
Terrorism and Sabotage
Sabotage and terrorism insurance coverage are designed to protect you against financial losses directly resulting from politically motivated violence or terrorism and sabotage events.
War Risk
War risk insurance is a type of insurance which covers damage due to acts of war, including invasion, insurrection, rebellion and hijacking. Some policies also cover damage due to weapons of mass destruction. It is most commonly used in the shipping and aviation industries.
Confiscation, Expropriation, Nationalisation
This covers the seizure of the investor’s assets or shareholding by or under the law, order or decree of the foreign government
Forced Divestiture
This is designed to cover when an investor is being compelled by its own government to divest itself of its interest in the foreign investment (For example, as the result of the imposition of sanctions).
Export Embargo & Business Interruption
This covers the inability to export finished goods or stocks from the foreign country or during the loss of gross margin following a physical damage event occasioned by War or Political Violence.