There is always a chance of exposure to political risk while doing business in a developing country. Irrespective of your type of business, political risk insurance maintains reduced exposure to political risk which is a key to a successful global business today.
Political risk insurance is designed to protect your business against financial loss due to political risk. The different types of political risks are listed below:
Assets must be physical like inventory or machinery and complete ownership of the assets must be possessed.
Equity must be invested in the sales office, warehouse or a plant in the emerging market and controlling interest must be owned by the foreign affiliate.
Loan must be taken on the commercial entity that supports Canadian exports or Canadian foreign investments.
Loans must be made to a government in an emerging market and should be done in favour of Canada.
It is a type of insurance specially designed to protect businesses against political risks that they face while trading in foreign markets.
Far far away, behind the word mountains, far from the countries Vokalia and Consonantia, there live the blind texts. Separated they live in Bookmarksgrove right at the coast
You generally require a complete unconditional guarantee from the Ministry of Finance of that country.
We can still provide political risk insurance provided the credit-risk is comfortable and there is central government support.
You receive up to 90% of the incurred losses.
