Products & Services

Political & Financial Risks

We offer significant capacity in this specialised class and have highly capable people with market-leading experience in the following areas:

> Political risk: insuring assets – fixed, mobile and leased – against governmental expropriatory acts. Coverage extensions include war/terrorism physical damage and breach of contract.

> Contract frustration/repudiation: covering non-performance under contracts, usually for the sale or purchase of goods or services, including non-payment of sums, where our insured’s counterparty can be either government-status entities or private entities.

Our insureds are financial institutions, commodity traders, manufactures, lessors, investors, contractors, multilateral institutions and export credit agencies. We operate an insured-centric partnership approach , where establishing long-term working relationships with our insureds is of paramount importance. We do this via a small number of highly specialised brokers, to whom we aim to provide excellent service for their clients.

Examples of coverage:

Manufacturer of consumer goods insures its assembly operations overseas against:
> Expropriatory acts by the host government;
> Inability to repatriate dividends due to foreign currency shortages;
> Inability to export finished goods due to embargo;
> Physical damage to operations caused by war or terrorism. 

Commodity trader prepays for oil from a government-owned oil company overseas, to be delivered in the future. Coverage is for:
> Non-delivery of oil by the oil company as contractually due.

Bank finances the sale of goods to an entity overseas by confirming a letter of credit opened by the buyer’s private-status bank. Coverage is for:
> Non-payment under the letter of credit by the overseas bank.

Our Political & Financial Risks Team are located at Box 186, 14.30–17.00 on Gallery 1 at Lloyd's.

  • Contract Length: Political Risks And Contract Frustration - 7 Years, Credit - 5 Years