Risk Management

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Political Risk Insurance

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Political Risk Insurance Covers:

  • Unusual acts by foreign governments or political events abroad such as war, revolution, expropriation, import license cancellation, restrictions or prohibitions on imports decreed by the government of the buyer's country/ region or other government action that prevents exporters from properly fulfilling their contracts

  • Sovereign risk: a credit or loan extended to the importer backed by the importing country's “good faith and credit” such as a Ministry of Finance guarantee, is not honoured on a timely basis

  • Transfer risk: includes currency regulation measures by foreign governments or central banks that keep buyers from making payment

  • Pre-delivery risk: (also referred to as manufacturers' risk), in which it is unreasonable or impossible to make delivery as stipulated in the contract due to growing political or transfer risks or the lack of shipping facilities abroad