Protection from political risk

Political risk refers to a change that may have a substantial impact on the interests of a company, financial institutions, banks or investors, and includes conflict, riots, civil war, etc. It may also take the form of a political decision such as blocking the transfer of assets, confiscation, the unilateral refusal of the authorities to comply with their obligations, an embargo, nationalization, expropriation, etc.

Political risk is a fundamental part of project risk, especially for large-scale industrial projects in unstable regions, emerging countries or deteriorating security environments.

Single Risk insurance provides irrevocable cover for political and commercial risks (i.e. non-payment of receivables) in the context of a one-off and complex contract or project over a long period from the start of the transaction to its end.

Clients who take out this form of insurance include exporters, importers and investors or companies that want to finance projects that are exposed to manifold threats such as non-payment of receivables, insolvency and non-transfer, non-payment of rent, contract interruption, and improper recourse to bonds. 

Single Risk also protects investments, assets, subsidiaries and holdings abroad against embargo, armed conflict, riots, strikes, wars and acts of terrorism, confiscation, expropriation, nationalization, dispossession, and changes in legislation.