Political Risks & Trade Credit

Beazley provides specialist insurance protection in respect of emerging markets, political violence, credit and wider political risks to a range of clients including:

• Commodity traders
• Foreign investors
• Banks and financial institutions
• Project financiers and sponsors
• Forfeiting companies
• Exporters and importers of goods and services

Coverage

We mitigate our clients’ cross-border risks in respect of assets exposed to political force majeure events such as expropriation, wars, acts of terrorism, civil disturbances, and other forms of political violence.

Risks covered also include:

• Embargoes, border closures, and other types of government interference including confiscation and deprivation of assets (whether fixed or mobile)
• Selective discrimination
• Cancellation of operating licenses or concessions
• Inability to repatriate dividends or intercompany loans

These and other acts beyond the client’s control can lead to the cessation of their operations and the failure of their investments, as well as to business interruption losses.

Protection against government sponsored acts

For companies trading with public and private counter parties, we provide insurance to protect against government sponsored acts before and after shipment of goods, including:

• Unilateral termination of a contract by a foreign government
• Cancellation of import and/or export licenses
• Non-delivery for pre-paid goods; non-payment
• Inability to convert and/or transfer foreign currency
• Non-honouring of payment instruments such as central bank guarantees or letters of credits
• Refusal to pay arbitration awards
• Wrongful calling of contractual bonds

Trade credit

In conjunction with our political risks account, we also provide insurance for commercial credit risk.  Our trade credit account encompasses:

• Traditional structures with privately owned counter parties for sale and/or purchase of goods and services on deferred payment terms or for which advances have been made
• Buyer and supplier credits and insurance in respect of payment debt instruments (e.g. letters of credit, bills of exchange, promissory notes, etc.)

Cover is also available for more complex transactions reflecting the rapidly evolving sources of finance available to our clients and their emerging market counterparts. Examples of those transactions include structured trade finance, commodity finance, project finance and certain types of asset backed acquisition finance.

Limits

Lead line of up to US $30m any one risk

Tenor

Up to a maximum of seven years

Key Territories

Worldwide