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Political Risk insurance protects a contractor, investor, or project owner
against loss or damage caused by government interference or political violence.
ERM works with bankers, government agencies, and commercial
insurers to develop cost-effective solutions that enable overseas projects and
contracts to succeed.
While each situation is unique, and we often blend several types of policies
to create customized answers, most Political Risk policies fall into the
following categories:
 | Confiscation, Expropriation, Nationalization, Deprivation: the
unlawful seizure of assets or investments without proper compensation by
governmental authority (de jure or de facto). |
| Contract Frustration: loss caused by government action (e.g.
embargo, license cancellation, non-payment). Often extended to cover
commercial risks of non-payment when the customer is a private company. |
| Political Violence: physical loss or damage caused by war, civil
war, insurrection, revolution, and other perils typically excluded by
property insurance underwriters. Can be extended to cover loss of income as
well. |
| Wrongful Calling: the seizure without compensation of a bond (e.g.
advance payment, bid or performance), typically by governmental authority,
for reasons not permitted in the contract. |
| Kidnap & Ransom, Extortion, Tampering: coverage for employee
ransom expenses, including the services of an experienced hostage
negotiating team. Extortion coverage applies to threats against a company's
assets. Product Tampering coverage provides recall expenses, lost income,
and public relations services in the event of a tampering incident. |
Call ERM at (860) 435-0430 to discuss your needs today! For
examples of ERM Political Risk programs, click
here.
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This is a description of certain features of typical
insurance policies. Your policy may be different. The actual terms and
conditions are contained in the applications, policy text, and endorsements.
This is not a solicitation of coverage, which can only be made by a licensed
insurance broker or authorized representative. Please read our
disclaimer.
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