Political Risk Insurance

What about making an investment into an overseas market, as opposed to selling a product to an overseas buyer? For example, perhaps you’re considering building a plant overseas, making a capital investment into an overseas joint-venture, or completing an overseas project that requires manpower, equipment and inventory to be located abroad. In these situations, and many others, someone within the company needs to ask the question – is it possible for the overseas government to do something unfairly that negatively affects our investment? Pursuing opportunities in foreign countries, especially emerging markets, exposes your company to additional risks related to the actions of foreign governments and political events. Political Risk Insurance Programs can protect your company’s operations and investments in foreign countries, including coverages related to the following (and more):

• Confiscation, expropriation, or nationalization
• Currency inconvertibility and non-transfer
• Political violence (including terrorism and war)
• Contract frustration due to political events
• Sovereign payment default
• Wrongful call of on-demand guarantees and bonds
• Selective discrimination

Political Risk Insurance Programs are designed to protect companies and business ventures in overseas locations and against perils that other conventional insurance policies would not cover. With the ongoing and increasing political and economic instability throughout the world, Political Risk Insurance Programs are becoming more popular as companies look to protect and finance their global interests.