Protecting your foreign trade or investments against adverse actions by foreign governments helps to ensure the viability of the contract, and thereby protects your company’s investment and balance sheet.

Red Rock offers a suite of political risk products tailored to your company’s requirements and to the requirements of a specific project. The political risk products complement our trade credit coverage and provide coverage specific to trade with government buyers in foreign countries.

Political Risk Insurance

  • $40,000,000 capacity for domestic and export trade credit policies
  • Non-cancelable buyer and country limits
  • Policy terms of up to 3 years
  • Broad spectrum of risk covered

Key Political Risk Considerations:

Currency Inconvertibility/Transfer Risk – A local government restricts any “hard currency” from leaving the country; your buyer is not able to pay for goods delivered or the proceeds from an investment are not able to be repatriated.

Import or Export License Cancellation – Cancellation by law, order or decree of a previously valid import or export license, which prevents the export or import of Goods Insured from, or into, the Buyer’s country, or into the Country of Destination where the Goods Insured are to be delivered.

Confiscation, Expropriation and Nationalization – A local government takes control of your investment, or impedes the repatriation of any profits or proceeds from the investment in the local country. This could apply to fixed assets or quasi capital mobile assets in the foreign country.

Wrongful or Rightful Call of a Bond for Political Reasons – The foreign buyer calls a bond or guarantee posted by your company against your performance or advance payment received from the buyer. This coverage provides protection where the bond is wrongfully called or a political event takes place that is outside your control.

Red Rock Political Risk Insurance Products:

  • Contract Frustration– Protect against foreign buyer default due to government actions of the foreign country.
  • Confiscation, Expropriation and Nationalization – Protect your foreign investment against a government act that impedes the repatriation of profits or the expropriation of property or assets.
  • Financial Institutions Political Risk Insurance – Protection for financial institutions when providing project financing to foreign investment projects.
  • Guarantee Protection Insurance – Protect your guarantee, bond or some other form of advance payment or performance security against wrongful call or rightful call for political reasons by the foreign buyer.