WHAT is Political Risk Insurance?
The second of the two main categories of risk managed by Cultivar Insurance Ltd. Political Risk Insurance indemnifies the Insured against financial loses owing to a specific Government actions or measures preventing the fulfilment of a transaction under a trade/trade-financing agreement.
The failure of a Government entity to meet debt repayments; non-honouring of a Government entity of its contractual debt payments/financial guarantees; or measures by a Government entity preventing a private sector counterparty/borrower from making due payment(s).
The inability to enforce an award against a host Government entity.
Government restriction of the commercial counterparty/borrower to make payment(s) in a foreign currency as well as restriction to execute currency exchange.
The imposition of any law, order, decree or regulation or export restriction by a Government entity, legally preventing exporting or importing activities.
Government cancellation of a valid operating licence due to political factors.
