Securitas Global Risk Solutions

 

Political Risk Insurance

Overview:

Property Damage due to Political Violence
  • Covers physical loss or damage to tangible assets due to Political Violence.
  • Includes both war risk and terrorism in one policy.
  • Can be extended to include Business Interruption.
  • Abandonment of Operations
  • Covers abandonment of operations due to Political Force Majeure.
  • Political Force Majeure includes both Political Violence and Foreign Government action.
  • Recognizes that war, civil commotion, terrorism, etc., can cause a total loss even where no physical damage occurs.
  • Foreign Government actions can include License Cancellation, prohibition of operations, etc.
  • Sanctions coverage (actions of the investor’s government) can also be covered.  
     
Confiscation/Expropriation
  • Covers the taking over of the Foreign Enterprise or assets by the Foreign Government and other expropriatory action.
  • Includes Forced Divestiture, where your own government requires you to exit from the Foreign Enterprise.
Breach of Contract
  • The central risk for many infrastructure investments (power, water, roads, telecom's, etc.)
  • A separate section of cover is required to cover Breach of Contract by the Foreign Government effectively.
     
Currency Inconvertibility
  • Covers dividends, loan repayments or other capital remittances against currency inconvertibility and transfer risks.

   
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