Dependent on the type of transaction for assets, investments and loans the following risks may be covered:
Confiscation, Expropriation and Nationalisation
A Government’s confiscation, expropriation or nationalisation of a company that results in the partial or total loss of investment or assets
Currency Inconvertibility and Exchange Transfer
Government controls that prevent the purchase or transfer of hard currency for dividend payments, loan repayments or other remittances
Political Violence (war, terrorism, etc)
Politically motivated acts of violence, including terrorism, war and civil war that result in physical damage to property
Forced Abandonment or Forced Diversitive
Abandonment of operations due to a direct result of political violence or permanent divestiture of all or part of the Company’s investment at the direction of host government
Inability to Export or Import
Cancellation of import or export license by the host government
Breach of Contract
Non-Honoring of an Arbitration Award
Governmental actions that result in the default of the counterparty’s obligation to pay the Assured on arbitral award
Business Interruption
Loss of projected net profit resulting from an event of expropriation or political violence
Deprivation
Inability to export finished product from the foreign investment or repatriate mobile assets
Contract Repudiation
Pre shipment
• War
• Embargo
• License cancellation
• Unilateral termination of contract
Wrongful Calling of Guarantees
• The arbitration and unfair call by either government obligor or private buyer
• The rightful call by a private buyer due to a government action
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