Equity Investment Protection

Political risk insurance coverage for equity investors against loss of their investment due to certain defined events. Bespoke coverage must be obtained for this form of insurance protection, with cover including but not limited to the following political risk events:

- confiscation, expropriation, nationalisation and deprivation

- selective discrimination

- currency inconvertibility or non-transfer

- war and political violence

- licence cancellation

- breach of contract by a host government

- embargo/forced abandonment

- arbitral award default

- strikes/riots and civil commotion

Policy tenors are in general up to five years depending upon amongst other things the country of risk and industry sector. However, in certain circumstances policy terms can be obtained for seven to ten years or even longer.

It is possible to obtain 100% coverage for pre-agreed insured values. The indemnity provided under the policy would be based on the amount of the Insured’s “net investment” which was lost, the value of the assets damaged or destroyed or the value of the remittances which could not be transferred due to the above political risk events.