Trade Credit and Political Risks
ArgoGlobal’s political risk insurance protects businesses against risks that interfere with the ability to operate cross-border investments, complete trade transactions or be paid.
Available coverage under this specialized line of business includes:
- Pre-shipment perils, including breach of contract, force majeure, import/export embargo and license cancellation.
- Non-delivery of goods and/or non-repayment of a prepayment made under a pre-export finance or barter contract.
- Unfair calling or fair call for political reasons of on-demand bonds.
- Non-payment of contractually due amounts.
- Un-honored letters of credit.
- Exchange transfer and currency inconvertibility.
- Un-honored arbitration awards or court judgments.
- Expropriation, including confiscation, nationalization, deprivation, selective discrimination, forced divesture and forced abandonment by an overseas government entity of an insured’s interest.
- Physical damage or destruction of property due to war, strikes, riots and civil commotion.
Appetite & Availability
ArgoGlobal writes business on a worldwide basis, excluding in Afghanistan, Cuba, North Korea, Republic of Sudan and Syria.
The company offers a line size of up to $20 million per transaction.
- Political Risk and Contract Frustration Policies: 10 years
- Trade Credit: 7 years
- Financial Guarantee: 5 years
In addition to considering submissions at Lloyd’s, ArgoGlobal has authority to underwrite this account through its offices in Singapore, Dubai and Shanghai. It will continue to explore the opportunity to develop new business using other offices in Argo Group’s global network.
ArgoGlobal’s account is based on long-standing relations with key industrial and trader clients, banks, and specialist brokers. Its policies are tailored to address specific transactional needs.