Marsh launches facility to meet concern over political risk
“The global recession, credit crisis, increased terrorist activity and political unrest have created a more complex risk landscape for companies investing, manufacturing and trading overseas. Combined with a lack of liquidity and lending constraints, companies now have much higher levels of risk on their balance sheets,” said Julian Macey-Dare, International Head of Marsh’s Political Risks and Structured Credit business.
“As companies seek to strengthen their resilience, they are more acutely aware of the catastrophic effect that political risk losses can have on their assets and earnings,” he added.
Marsh’s new facility offers protection against abandonment, deprivation, expropriation, riot, strike, civil commotion, sabotage, terrorism, malicious damage, war and civil war, revolution, rebellion, insurrection and hostile act by a belligerent power.
Available globally, the product provides up to $100m of cover per risk for plant, equipment and inventories located in foreign countries and territorial waters or while in transit between sites.
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It can also be extended to cover third party blockade or quarantine and business interruption covering gross profit, revenue, gross earnings, loss of rental income, extra expenses and increased costs of working.