Political Risk Insurance

What you need to know

What is Political Risk Insurance?
Political Risk Insurance, available from both public and private entities, protects investors against politically motivated acts or government actions that affect the viability of a project. It includes cover for inconvertibility and currency transfer restriction; expropriation; breach of contract; and war, terrorism and civil disturbance.

Who needs Political Risk Insurance?
Political Risk Insurance is an important tool for equity investors and financiers. In addition to providing balance sheet protection, Political Risk Insurance also helps strengthen a company’s position with lenders and investors. Banks sometimes require companies to purchase Political Risk Insurance as a precondition to financing. With the right insurance partner, a Political Risk Insurance policy is a good source of balance sheet protection for companies that entertain contracts in emerging markets.

The Winley Insurance Group solution
Managing political risk – along with commercial risk – is becoming a standard part of the corporate decision-making process for companies that invest in a foreign country. With a good understanding of the investment environment and suitable risk management, there are remarkable opportunities for investors to make both profitable and productive investments that additionally benefit people in the developing world. By effectively managing the risks linking to political uncertainties, a good investment can go ahead in even the riskiest of environments.

If you’re looking for an insurance broker to help manage political risk or you just want to learn more, think of Winley Insurance Group! Political Risk Insurance policies provide two types cover: asset cover and trade cover.

Asset cover includes:

• Confiscation of fixed or mobile assets by a foreign government. This includes deprivation, nationalisation, creeping, expropriation/selective discrimination, forced abandonment and forced divestiture
• Political violence - war on land and terrorism
• Inability to convert or transfer currency
• Aircraft repossession

Trade-related cover includes:

• Events before shipment, such as import/export embargo, licence cancellation, war and breach of contract forced by government intervention
• Events after shipment, such as non-payment, non-delivery of prepaid goods, or inability to convert or transfer currency
• Unfair calling of on-demand contract bonds

Political risk premiums are based on your country of operations and your industry.

Contact us for additional information or a quote
From agriculture to mining and from land development to construction, Winley customises the Political Risk Insurance policy to suit your industry and operations. Contact us at 1300 732 205 or begin our Political Risk Insurance quote process now. Winley’s experienced brokers service clients based anywhere in Australia and can handle your Political Risk Insurance needs globally.