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