Political Risk Insurance | Contract Frustration
Political risk insurance provides coverage against losses that can result from various political perils due to international trade including Nationalisation and Confiscation, Currency inconvertibility with non-transfer of funds, Political violence, and Contract frustration.
This type of insurance is less well-known than Trade Credit insurance but is requested when dealing with countries that have less well developed political and legal systems.
Invariably, this type of insurance is seen when dealing with emerging markets, and due to political instability within the foreign government. Where there is a chance of forced abandonment of operations within an overseas country this protection is also of benefit.
The insurance itself can be a multi-year coverage, with this coverage able to be taken by either importers, or exporters, and also major infrastructure developers such as mining houses.
With the majority of the world still in a developing status, and with major companies competing against each other globally with risks heightened due to not being as familiar with local communities and foreign legislature, having some type of financial protection that for these major government risks makes sense.
We can assist you in obtaining PRI coverage. Please complete our on-line form in order to provide the preliminary information required, or contact us today for a no-obligation pricing.