To discuss Investment Risk Insurance call Mark Holman at 905-886-5630 or toll free at 1-800-567-1279.

Insurance for political risk against loss from damage to, or the destruction or disappearance of, tangible assets caused by politically motivated acts of war or civil disturbance in the host country, including revolution, insurrection, coups d'état, sabotage, and terrorism is available.

Investment risk insurance protects against loss of the insured investment as a result of acts by the host government that may reduce or eliminate ownership of, control over, or rights to the insured investment. In addition to outright nationalization and confiscation, "creeping" expropriation-a series of acts that, over time, have an expropriators effect-is also covered.

Coverage is available on a limited basis for partial expropriation (e.g., confiscation of funds or tangible assets). Bona fide, non-discriminatory measures by the host government in the exercise of legitimate regulatory authority are not covered.

For total expropriation of equity investments, the insurer pays the net book value of the insured investment. For expropriation of funds, the insurer pays the insured portion of the blocked funds. For loans and loan guaranties, the insurer insures the outstanding principal and any accrued and unpaid interest.

Compensation will be paid upon assignment of the investor's interest in the expropriated investment (e.g., equity shares or interest in a loan agreement) to the insurer.

Investment Risk insurance also protects against losses arising from an investor's inability to convert local currency (capital, interest, principal, profits, royalties and other remittances) into foreign exchange for transfer outside the host country. The coverage insures against excessive delays in acquiring foreign exchange caused by host government action or failure to act, by adverse changes in exchange control laws or regulations, and by deterioration in conditions governing the conversion and transfer of local currency. Currency devaluation is not covered.

On receipt of the blocked local currency from an investor, the insurer will pay compensation in the currency of its Contract of Guarantee.

War and Civil Disturbance coverage also extends to events that, for a period of one year, result in an interruption of project operations essential to overall financial viability. This type of business interruption is effective when the investment is considered a total loss; at that point, the insurer will pay the book value of the total insured equity investment. For loans and loan guaranties, the insurer pays the insured portion of the principal and interest payments in default as a result of business interruption caused by covered events.