Posted on Sunday, 30th January 2011 by
As protests flare in Egypt and other countries over the last few weeks, companies with investments in those countries are reassessing their business insurance and risk management strategy.
Political unrest is a difficult risk to properly insure. This is because damage to a particular business could be caused by any number of sources – even police, government, and military sources. Is a mob burning a delivery truck a political action? Is it an act of war? Arson? Each act can be categorized differently. And, depending on coverage in place, may or may not be covered by the company’s insurance.
“Some buyers of terrorism insurance have found themselves without cover following civil disturbances, for example in Thailand last year, because of disagreements about whether certain events were acts of terrorism or political violence,” Mr. Evan Freely, Global Head of Marsh’s Political Risk and Trade Credit Practice, states. “Companies need to make sure that they have insurance coverage for a broad range of perils, reducing uncertainty that can be caused over the classification of an event.”
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Tags: Political, Political Unrest
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