Political Risk



Political Risk insurance protects a contractor, investor, or project owner against loss or damage caused by government interference or political violence.

ERM works with bankers, government agencies, and commercial insurers to develop cost-effective solutions that enable overseas projects and contracts to succeed.

While each situation is unique, and we often blend several types of policies to create customized answers, most Political Risk policies fall into the following categories:

bulletConfiscation, Expropriation, Nationalization, Deprivation: the unlawful seizure of assets or investments without proper compensation by governmental authority (de jure or de facto).
bulletContract Frustration: loss caused by government action (e.g. embargo, license cancellation, non-payment). Often extended to cover commercial risks of non-payment when the customer is a private company.
bulletPolitical Violence: physical loss or damage caused by war, civil war, insurrection, revolution, and other perils typically excluded by property insurance underwriters. Can be extended to cover loss of income as well.
bulletWrongful Calling: the seizure without compensation of a bond (e.g. advance payment, bid or performance), typically by governmental authority, for reasons not permitted in the contract.
bulletKidnap & Ransom, Extortion, Tampering: coverage for employee ransom expenses, including the services of an experienced hostage negotiating team. Extortion coverage applies to threats against a company's assets. Product Tampering coverage provides recall expenses, lost income, and public relations services in the event of a tampering incident.

Call ERM at (860) 435-0430 to discuss your needs today! For examples of ERM Political Risk programs, click here.

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This is a description of certain features of typical insurance policies. Your policy may be different. The actual terms and conditions are contained in the applications, policy text, and endorsements. This is not a solicitation of coverage, which can only be made by a licensed insurance broker or authorized representative. Please read our disclaimer.


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