Sat, 5 Jul 2008

Political Risk Insurance

Conducting business on the international stage entails a number of specific risks that do not necessarily come down to a collapse of trade relations caused by a trading partner. Sometimes factors, mostly political or socio-economic in nature, figure into the equation and they are for the most part far beyond the control of the individual companies.

Political Risk coverage includes protection for your trade receivables if your trading partner is in a country that experiences a sudden, radical political change resulting in the possible confiscation, expropriation, abandonment, repossession or even nationalization of fixed and/or variable assets.

The likelihood for economic and political instability should therefore weigh in on any sensible decision when striving to become a global player in emerging and/or otherwise volatile markets.

Opting for Coface’s political risk insurance guarantees that all activities of companies engaged in international import or export contracts as well as investments or financing linked to operations abroad are protected.