Our offer

Political Risk Cover

Cover your contracts and investments abroad

POLITICAL RISK SOLUTIONS IF YOU

  • Sell capital goods, commodities or services
  • Buy or import products
  • Invest abroad
  • A financial institution which extends finance, arranges discounting or confirms letters of credit.

Coface's Political Risk arm focuses on political and commercial risk cover.  Our offer revolves around four innovative contracts:

  • Political Risk guarantee
  • Import guarantee
  • Financing guarantee
  • Investment guarantee

Political Risk Guarantee

Type11
Risk Covered
  • Contract Interruption
  • Non-payment/ Non-transfer
  • Unfair calling of bonds
Operations Covered

All sales of capital goods and consumer goods, including but not limited to, to the following sectors: Energy, Transport Infrastructure, Telecommunications and Space industries, Water treatment, Construction and Public works, Services, Commodities.

 

Whether your customers are private companies or public entities, abroad or in the UK, your contracts are covered.

Financing Guarantee

Type11
RISK COVERED
  • Non-payment, non-transfer
  • Asset impairment
  • Lender's form: inconvertibility and non-transfer, failure to repay a loan following:
    • A political decision, confiscation, expropriation, nationalisation, deprivation
    • Or a political event, war, rioting or act of terrorism.
OPERATIONS COVERED
  • Loans
  • Confirmation of letters of credit
  • Discounting without recourse
  • Pre-financing
  • Project financing etc

Import & Investment Guarantees

 
IMPORT GUARANTEE:  Covers non delivery of products or termination of supply contracts without any financial compensation. The policy protects your contracts with British or foreign suppliers, private or public.
 
 
INVESTMENT GUARANTEE:  If you invest abroad your assets are exposed to particular risks, including confiscation, expropriation, nationalisation, deprivation, operating losses and forced abandonment.  The risk of material damage caused by a strike, riot, civil uprising, act of terrorism or even a war in the country is covered by this policy. 

Delivering a valuable solution…

Delivering a valuable solution…

A company operating in the oil sector has a subsidiary in Venezuela. Following nationalisations in the Venezuelan oil sector, the company's assets are confiscated by the Venezuelan state.

 

The Single Risk policy covers 100% of the net book value of the investment.

 

Once the amount covered is paid, the policyholder, in liaison with Coface, attempts to recover the insured amounts, which represent collections for Coface.

 

 

 

 

 

 

A French company that is the market leader in the production of electrical equipment signs a contract with a state-owned company in North Africa. For no apparent reason, the buyer terminates the contract during the production process, even though the French company has respected its contractual obligations.

 

Coface’s Single Risk policy covers 90% of the exporter’s losses.

 

Once the amount covered is paid, the policyholder, in liaison with Coface, attempts to recover the insured amounts, which represent collections for Coface.

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