Political risk

Class Overview

Novae boasts considerable experience of the political risk market. The team underwrites all types of political risk and trade credit business. Novae provides protection for a variety of clients includings banks, commodity traders, miners, construction companies and general manufacturers.

Risk Appetite

The account includes:

Contract risks:

• Non-payment
• Non-delivery
• Non-honouring of letters of credit
• Exchange transfer and inconvertibility
• Embargo and licence cancellation
• Contract repudiation
• Force majeure
• Refusal to perform contractual obligations
• Refusal to honour arbitration awards or court judgments
• Unfair calling/fair call for political reasons of on demand bonds
• Private buyer insolvency and protracted default

Confiscation risks:

• Confiscation
• Expropriation
• Nationalisation and deprivation
• Selective discrimination
• Forced divestiture
• Forced abandonment

Physical damage:

• Physical damage or destruction of property due to war, strikes,
  riot and civil commotion

  If you require any further information

  Please contact an Underwriter or email your enquiry to PoliticalRisk@novae.com