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Political Risk
Political risk cover in a nutshell, covers you for losses incured for export debts whereby you do not get paid because of Political events, say government intervention, even neighbouring countries to the UK can technically trigger Political Risk.Remember the beef situation and BSE. The French Government stopped beef going into France and a number of UK suppliers suffered because of this and were paid out by the insurer.
Political Risk generally covers:
War.
Natural Disaster: Flood, Volcanic Eruption, a Tidal wave, Earthquake, Cyclone or other form of natural disaster in the buyers country.
Export Licence Cancellation.
Contract Frustration - so a government takes some form of action which prevents the performance of the contract.
Currency fluctuations.
Transfer Delay - political events, economic difficulties, currency shortages or legislative/administrative measures in the buyers country which prevent or delay the transfer of amounts deposited by the buyer.
A moratorium imposed by the government of the buyers country.