Political Risk Insurance – Contract Frustration Coverage
- Up to USD 200 million per risk
- Up to 20 years
Doing business internationally can be tough when things go wrong. AXA’s political risk insurance protects businesses worldwide against losses in a range of situations from government embargoes and license cancellations to non-payment and delivery issues. We cover individual contracts and groups of transactions, whether short, medium or long-term. And we can tailor policy wordings to a specific transaction.
- Contracts with governments, public sector bodies and some private sector transactions
- License cancellation
- Import and export embargoes
- Unfair/fair calling of advance payment or performance guarantees
- Non-cancellable cover
- Non-repayment of an advance payment following non-delivery of goods
- Non-honoring of parental guarantee
- Non-honoring of a letter of credit
- Non-honoring of an arbitration award following unfair calling of a bond
- US political risk insurance policies written on an admitted or non-admitted basis
Large corporations, both public and private, involved in foreign direct investment, cross-border lending or international business, primarily in emerging markets across a variety of industries
- Global and leading regional financial institutions
- Commodity traders
- Engineering/procurement/construction contractors
Typical Information Required
- Summary of the financing transaction to be covered, including the purpose of the financing, tenor, amortization, security structure/collateral and pricing
- Most recent three years financial statements for the obligor/guarantor
- Summary of the insured’s experience doing business with the obligor and in the obligor’s country
- Coverages being requested and tenor requirements
Benefits & Services
- Capability to issue policies from the US, UK, Singapore, Bermuda, Canada, Brazil, Australia and Insurance segment's Lloyd’s syndicate 2003 to accommodate licensing and geographical location requirements.
- Underwriting locations in New York, London, Singapore, Hamilton, Toronto, Brazil, Madrid and Sydney provide local, same-time zone access to our global capabilities.
Information and Research
The information contained herein is intended for informational purposes only. It’s is neither an offer to sell nor a solicitation to purchase any particular insurance product. Insurance coverage in any particular case will depend upon the type of policy in effect, the terms, conditions and exclusions in any such policy, and the facts of each unique situation. No representation is made that any specific insurance coverage would apply in the circumstances outlined herein. Please refer to the individual policy forms for specific coverage details. AXA XL is a division of AXA Group providing products and services through four business groups: AXA XL Insurance, AXA XL Reinsurance, AXA XL Art & Lifestyle and AXA XL Risk Consulting. In the US, the AXA XL insurance companies are: AXA Insurance Company, Catlin Insurance Company, Inc., Greenwich Insurance Company, Indian Harbor Insurance Company, XL Insurance America, Inc., XL Specialty Insurance Company and T.H.E. Insurance Company. In Canada, coverages are underwritten by XL Specialty Insurance Company - Canadian Branch and AXA Insurance Company - Canadian branch. Coverages may also be underwritten by Lloyd’s Syndicate #2003. Coverages underwritten by Lloyd’s Syndicate #2003 are placed on behalf of the member of Syndicate #2003 by Catlin Canada Inc. Lloyd’s ratings are independent of AXA Group. Not all of the insurers do business in all jurisdictions nor is coverage available in all jurisdictions.