Political Risks

In today’s global market, most companies are aware of the potential benefits associated with exploiting opportunities in emerging markets. However they are also aware of the risks associated with operating in a foreign country and under a foreign jurisdiction. 

There are also good reasons why some companies are uncomfortable with taking on the risks associated with operating in a foreign country and under a foreign jurisdiction.

These risks include:  

• Financial loss caused by unilateral repudiation of a contract by a government buyer or supplier

• Seizure or confiscation of owned or leased assets

• Politically motivated violence that results in property damage, or evacuation and repatriation of the local team leaving valuable equipment behind

• Inability to repatriate equipment once a project or contract is completed

• Inability to repatriate or convert currency earned in that country

• Government buyer wrongfully calling on a guarantee or bond provided by the company

Political Risk Insurance from Chartis helps companies to invest, contract or expand internationally, confident that the political uncertainties of doing business in a foreign country are mitigated.