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Coface South – Credit insurance specialists

Coface South – E.W. Droppa & Associates, LLC. is a general agency for Coface North America. Providing solutions in credit insurance, business reports and commercial collections.

Political Risk Insurance

Helping businesses break into and succeed in emerging markets!

When trading with international partners or investing in operations abroad, your activities become subject to political risk. In a world where geopolitical environments can be as unpredictable as they are devastating, it makes sense now more than ever to obtain political risk insurance. Insurance is available for numerous types of political risk events. Exact coverage will depend on the specific terms of the policy. These events are listed below under, “Trade in Emerging Markets.”

Coface North America Political Risk Insurance offers flexible and open-end coverage for political and commercial risk. Our political risk protection is designed to cover the activities of companies engaged in international import or export contracts as well as investments or financing linked to operations abroad. Protecting contracts with public entities and private partners, Coface North America Political Risk can customize coverages and combine them with commercial risk coverage to insure against insolvency or default of a private debtor. Political Risk Insurance bridges the gap between property and casualty coverage, which leaves out government intervention, by providing protection against the direct actions of a country’s government.

political risk

Trade in Emerging Markets

The risks under political risk coverage generally include:

Political violence, such as revolution, insurrection, civil unrest, terrorism or war.

Governmental expropriation or confiscation of assets.

Governmental frustration or repudiation of contracts.

Wrongful calling of letters of credit or similar on-demand guarantees.

Inability to convert foreign currency or repatriate funds.

 

 

 

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Invest in Emerging Markets

Typical companies that have a need for political risk insurance include:

Companies that currently operate in or plan to invest in emerging market economies.

Companies with manufacturing plants or significant inventory and equipment outside of the US, Canada, and Western Europe.

Companies that have entered into joint ventures or long- term leases in locations outside of the U.S., Canada, and Western Europe.