Do You Know How Political Risk Insurance Protects Your Business?

By | September 19, 2011

Through the increase of globalization, many businesses have started their businesses in other countries. Though the globalization of many businesses may frequently results in profits, sometimes business suffer from losses too. The losses are not always due to the poor management of the business, but instead they may be due to the changes in political instability, such as, changes in currency or taxes, and changes in the power that void the company existing contract, etc.

To secure the business from all possible political risks, various insurance companies offer the political risk insurance. Political risk insurance is specially designed for the businesses to secure the business from all the possible political losses, such as sudden fall in the currency price, increase in the taxes and changes in the regulations.

Political risk insurance is useful for most organizations, which do the business in countries which are politically unstable, or the business which export/ imports from political unstable countries.

Political risk insurance covers all the political risks, including

  1. Political violence
  2. Business interruption
  3. Governmental expropriation or confiscation of assets.

Therefore, it is advisable for business, which deals with more than one country, to have a political risk insurance.

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