Political & Credit Risk

Political & Credit Risk insurance from Sicher Sicher – Claim pro insurance broker

For any company or financial institution trading or investing overseas, exposure to Political and Credit Risk are a significant reality of doing business. Preservation and management of capital, along with the protection of shareholder value, have become paramount. Specialist insurance products can help mitigate these exposures and Sicher Sicher – Claim pro insurance broker is a market leading provider of transactional and associated advisory services in the field.

Sicher Sicher Global advises and arranges insurances for some of the world’s leading industrial companies, banks, oil producers, miners, exporters, construction companies and commodity traders. We arrange protection for their overseas investments and trading activities as well as the finance that underpins them.

COVERAGES of Political & Credit Risk insurance

Political and Credit Risk can be placed into two main categories associated with Asset Risk and Contract Risk:

Asset Risk Cover

We can arrange coverages to protect investments in Fixed

Assets, such as operating companies and joint ventures, as well as Mobile Assets such as plant and equipment or stocks of product whilst it is overseas. We arrange cover for banks on their loans to overseas borrowers or loans secured on overseas assets which are also vulnerable to foreign government actions.

Asset Risks insurance Protections we arrange encompass the following perils:

• Confiscation, Expropriation and Nationalization.

• Forced Abandonment.

• Forced Divestiture (where an investor’s own government requires them to divest an asset in a foreign country).

• Deprivation (restrictions on the export of product or equipment from the foreign country).

• Selective Discrimination including creeping expropriation

• Political Violence including War, Terrorism, Strikes, Riots and Civil Commotion.

• Operating Licence Cancellation.

• Currency Inconvertibility / Exchange Transfer restrictions in respect of dividend remittances or debt service payments from the foreign country.

• Arbitration Award Default.

• Trade Disruption and Business Interruption.

• Non-Repossession of assets securing financing extended by

the Insured.

What is the scope of cover?

Following a loss, insurance can indemnify you for the loss of:

• the book value of your equity, plus your share of any retained earnings and accounts receivable due at the date of loss.

• the outstanding value of any loans made to your foreign enterprise and any enduring obligations in respect of loans you have guaranteed.

• the book value or new replacement value of your mobile assets or stock.

• the hard currency equivalent of monies that you are unable to convert or transfer from the foreign country.

• the amount of an arbitration award made in your favor, but which is not honored.

• the cost of reinstatement of physical damage caused by Political Violence perils.

• increased costs and extra expenses.

Contract Risk insurance cover

Contract Risk is inherent in all trading or lending activity but especially so when operating overseas. Insurance cannot make up for a poorly worded contract but putting appropriate insurance around a contract can protect you against unforeseen defaults or macro political events.

We can arrange effective and affordable contract risk insurance cover for principals or lenders against all the following exposures:

  • Contractual Default including loss caused by Non-Payment for goods and services or Non-Delivery of goods or services paid for in advance.
  • Contract Frustration by the government of a foreign country.
  • Embargo including UN or EU measures preventing compliance with contractual obligations.
  • Import / Export Licence Cancellation.
  • War / Political Violence.
  • Arbitration Award Default.
  • Currency Inconvertibility / Exchange Transfer.
  • Non-Honouring of Guarantee.
  • Non-Honouring of Letter of Credit.
  • Wrongful Calling of on-demand Contract and Bid Bonds.
  • Fair Calling of on-demand Contract or Bid bonds following Political Force
  • Majeure events such as the imposition of an embargo or outbreak of war.
  • We can arrange cover to protect you against losses incurred both prior to and following shipment of goods.
What protection can Contract Risk Insurance provide?

Following a loss, contract risk insurance can indemnify you for the loss of amounts due to you under the terms of your contract or loan in respect of defaulted payment or delivery obligations. amounts due to you but not paid under any Letter of Credit where documentation has been satisfactorily submitted to the opening bank. amounts due but not paid to you under any guarantee given in support of the insured contract.

costs and expenses, you have incurred, up to the date of loss, in meeting your obligations under the contract prior to shipment being made – this includes costs in respect of design, raw materials manufacture etc. plus up to 10% net profit. The amounts called under any Contract or Bid Bond and for which your bank has demanded compensation under its counterindemnity.

Sicher Sicher Global’s expertise in arranging coverages for contract risk enables us to deliver bespoke solutions for trading companies, manufacturers, and exporters as well as global financial institutions supporting these activities.

The benefits of working with Sicher Sicher – Claim pro insurance broker

If you want to maximize the benefits and value of your insurance spend, Sicher Sicher – Claim pro insurance brokers are the people to talk to. Our knowledge and professionalism make Sicher Sicher – Claim pro inusurance broker highly regarded across the market. We are a strategic partner by all the major insurers active in the Political and Credit Risk field.

As we have proved again and again, good working relationships with specialist underwriters can make all the difference to an insurance broker’s ability to deliver high quality, cost effective solutions.

Rather than being another cost of doing business, well-structured insurance can add real value by facilitating finance or providing an extra layer of security for a deal that might not happen without it.

For a consultation or offers, please contact us via the preffered channel or fill in the contactform below. All exchanged data will be handled highly confidential. On request we will provide an non-disclosure aggreement for both sides.

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