Credit Political and Security Risk Questions & Answers

 

JLT Asia’s Credit, Political and Security Risk team help clients by offering advice on risk and structure solutions to enable global trade and investment.  

The team answer a series of frequently asked questions. Contact us if you would like to discuss any of these questions and answers in more detail.

WHAT HAPPENS IF...


A new type of security risks policy can be triggered ‘on imminent threat of’ or ‘on suspicion of’ a potential cyber-attached or compromise. The policy is designed to provide the critical first response to the potential crisis event by activating immediate access to professional cyber security experts and crisis consultants to support your company in identifying the issues, installing appropriate security measures to ensure that the crisis is isolated, mitigated and avoided, and assistance with internal and external messaging to key stakeholders to combat the issue head on. With an immediate and professional response reaction, the consultants can proactively ensure that your company’s data is secure and ultimately, your brand and reputation remains intact.

An emergency evacuation policy for natural catastrophes can be triggered whereby the staff will receive immediate advice from professional evacuation and security consultants on what to do and how to stay safe in the interim period, while the consultants deploy to the affected location.

A Security Risks policy will give you access to a 24/7 emergency hotline for advice and assistance from world class experts who will then deploy to the location of incident and HQ to assist in the safe and timely resolution of the incident, be it sinister or a simple misunderstanding.

Security Incident Response (SIR) gives you access to advisors who will provide initial response and sit with you at HQ to determine whether this is a real threat, or indeed a simple hoax from a disgruntled ex-employee or client, or a criminal looking to take opportunistic advantage of your operations.

Emergency evacuation coverage responds to political and security risks. You have 24/7 access to a team of evacuation specialists who will advise you on what is happening on the ground, and whether an evacuation is necessary, or whether the situation will die down in 24 hours and that the employees should remain in their hotels until safe to leave or continue with the conference. Should an evacuation prove necessary, a team will be deployed to move them to hibernation and the nearest place of safety, and eventually repatriate them.

Active assailant and assault covers under a kidnap and ransom policy provide response and assistance on the ground, ensuring that you are provided with real time updates as well as experts to move the affected person to safety, and provide communication advice throughout the company and families.

“Threat” coverage, an extension to a political violence policy, allows you to claim loss of earnings and the costs of evacuating staff. The political violence policy will cover costs of any property damage.

Advisors attached to a security coverage, and on a 24/7 number, will provide immediate telephone advice. They will deploy to both corporate HQ and to the location of incident while setting up a crisis management team to ensure the safe and timely release of the victim.

A security incident response policy is designed to provide covert and discreet advice and investigation into potential corporate espionage to put you in a position to pursue your concerns more formally with the authorities, and to ensure you follow the correct and legal processes in doing so.

A security incident response policy gives you access to emergency responders to assist you in dealing with the fallout from the event, any PR issues, and will pay for legal liability issues, as well as temporary security at the site to ensure employees feel safe.

Credit insurance will provide cover for commercial risks where by customers are unable to pay outstanding invoices because of financial reasons such as declared insolvency or failing to pay within agreed timescales as set out in terms and conditions (i.e. protracted default).

Comprehensive credit insurance covers non-payment for any reason including political risks such as currency inconvertibility and non-transfer.

Political risk insurance covers the confiscation, expropriation, nationalisation and deprivation of foreign owned overseas assets by the host government in that country. It also covers the forced divestiture of staff either by order of the host government or by order of the insured’s own government. The cover is subject to a waiting period or ‘test of permanency’ of 180 days, following which if you are still denied access to, and therefore unable to realise the value of your investment in the overseas asset, a claim would be paid under your political risk policy.

 Political risk Insurance will provide cover for lost or damaged inventory and stocks resulting from the Forced Abandonment of an asset due to Political Violence activity. There is a test of permanency applicable of 180 days.

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