Political Risks and Trade Credit

Overview

 

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

Details

 

We mitigate our clients’ cross-border risks in respect of assets exposed to political force majeure events such as 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.

 

For companies trading with public and private counterparties, 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

 

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 counterparties 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 available

Lead line of up to US $30,000,000 any one risk

 

Tenor

Up to a maximum of seven years

 

Key territories

Worldwide

 

Your Team

 

Underwriters

Peter Jenkins

Peter
Jenkins

Underwriter, Political & Credit Risks

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[Political Risks & Contingency]

London, UK

T +44 (0)20 7674 7554

E []

Adrian Lewers

Adrian
Lewers

Political & Contingency Group

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[Political Risks & Contingency]

London, UK

T +44 (0)20 7674 7045

E []

Noemi Wall

Noemi
Wall

Underwriter, Political Risks

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[Specialty Lines]

London, UK

T +44 (0)20 7674 7246

E []

Claims

Hannah  Purves

Hannah
Purves

Claims Manager

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[Political Risks & Contingency]

London, UK

T +44 (0)20 7674 7399

E []