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Political risks

Political risks
Political risks

When trading with international partners or investments in operations abroad, your operations pose a political risk. In a world where geopolitical conditions can be both unpredictable and devastating it makes sense to take out insurance against political and financial risks.

Most companies normally take out insurance against political risks to protect themselves against specific losses that might negatively affect their performance.

Insurance against political risks covers short- and medium-term trade as wellas projects and investments.

Risks covered:

  • War/internal unrest
  • Import or export embargo
  • Arbitrary termination of contracts by state purchasers
  • Licence withdrawal, loss of receivables through non-payment
  • Conversion, transferandpayment prohibitions
  • Other arbitrary state interventions
  • Non-opening of a confirmed letter of credit
  • Unjustified utilisation of bank guarantees that have been domiciliated at first request
  • Nationalisation and confiscation by higher authority
  • Expropriation ofmachineryand plant
  • Revocation of rights of disposal
  • Prohibition of transfer of investment income
  • Readiness to hedge even unconventional risks

 

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