Political Risks Cover for Comprehensive Contractors Plant & Equipment
Political Risk Insurance for mobile assets covers the loss or damage to assets caused by political risk perils excluded from most general insurance policies. A Comprehensive Contractors Plant Policy can cover single projects or multiple locations across one or more pre-agreed countries.
Insured Perils
- Forced Abandonment of assets.
- Expropriation (host government theft) of mobile assets.
- Deprivation of Assets (including export license cancellation).
- Physical Damage caused by political violence (including terrorism, war, civil war, rebellion, revolution, insurrection, riot, civil commotion, and malicious damage to the extent not covered by an existing Contractors All-Risks policy).
- Optional add-on - Currency Risks including inconvertability and non-transfer.
What are the major exclusions?
Loss arising from contractual agreements; failure to maintain other insurances; failure to obtain necessary permits; non-compliance with local laws; loss from insolvency or financial default; radioactive, chemical, or biological contamination; cyber-attack; war between the five great powers (China, France, Russia, USA, and the UK).
Standard ‘sanctions’ exclusion would also apply.
Extension
We can also arrange protection for non-tangible assets, such as equity investment in assets worldwide from unforeseen political risk perils protecting investment funds into companies and projects infrastructures. This is usually in the form of protection against Confiscation, Expropriation, Nationalisation, and Deprivation - "CEND", but we can tailor for wider perils if required.