Underwriting led by two Lloyd's syndicates
Insurance broker Marsh has launched a political risk insurance facility providing cover for mobile asset and commodity expropriation (MACE).
The global product offers up to $100m (£64.3m) of cover per risk for plant, equipment and inventories located in foreign countries and territorial waters or while in transit between sites.
“As companies seek to strengthen their resilience, they are more acutely aware of the catastrophic effect that political risk losses can have on their assets and earnings," said Julian Macey-Dare, international head of Marsh’s political risks and structured credit business, in a statement. "This product will help companies pursue growth opportunities in emerging markets with greater confidence.”
The facility offers protectiojn against abandonment, deprivation, expropriation, riot, strike, civil commotion, sabotage, terrorism, malicious damage, war and civil war, revolution, rebellion, insurrection and hostile act by a belligerent power. It can also be extended to cover third party blockade or quarantine and business interruption covering gross profit, revenue, gross earnings, loss of rental income, extra expenses and increased costs of working.
The product has no minimum premium requirement and has non-cancellable policy terms of up to three years. The facility is placed in Lloyd’s and the London company market, co-led by two Lloyd’s syndicates. Cover can be bought across a portfolio of assets, on a country-by-country or location-specific basis and can also be assigned to lenders.
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