Political Risk Insurance
provides companies with financial protection against losses that may arise from political events or actions and covers a range of political disruptions that could affect the company’s investments, assets or operations abroad.
Why do you need insurance against political risks?
Protects against global political dynamics
Country instability
Protects your investments against losses due to political instability, such as coups, civil wars or major changes of government.
Expropriation risk
Protects against the risk of a foreign government seizing a company’s assets without paying adequate compensation.
Currency inconvertibility
Ensures that companies can repatriate funds and protects against losses caused by the inability to convert the local currency into the company’s home currency due to government restrictions.
Maintains business continuity
Operational security
Allows business operations to continue in volatile regions without catastrophic financial impact from political changes.
Strategic planning and investment
Allows companies to capitalise on opportunities in high-risk regions by mitigating potential political risks.
Improves financial strategy
Asset protection
Protects a company’s physical and financial assets abroad.
Credit enhancement
Can improve a company’s creditworthiness by reassuring lenders and investors that political risks are covered.Credit enhancement:
Key features of a political risk policy
Comprehensive Coverage
- Contract Frustration: Covers losses from a foreign government’s breach of contract or failure to uphold contract obligations.
- Business Interruption: Provides compensation for losses due to business interruptions caused by political actions or instability.
Tailored Insurance Solutions
- Customizable Policies: Coverage terms can be tailored specifically to the risk profile of the country and the nature of the business activities.
- Multi-year Policies: Offers long-term coverage options, which are essential for investments in infrastructure projects and long-term contracts.
Support and Expertise
- Risk Assessment Tools: Insurers often provide detailed country risk assessments to help businesses understand potential risks and tailor coverage accordingly.
- Claims Support: Professional assistance in the event of a claim, ensuring that businesses can navigate the complexities of international political scenarios effectively.
