Political Violence Cover Vital for Those Operating Abroad
How Businesses Can Manage Political Risk Exposure Abroad
At one point, international organizations could operate in a number of countries without worrying about the risks of civil and political unrest. As of lately more and more nations have been added to the list of unstable locations. As a result, political violence insurance has never been more important than it is today.
Comprehensive international insurance solutions are one such option, and it can also be beneficial to pay close attention to the current climate in your host country.
Assess your existing insurance coverage
Today’s political climate is rapidly changing, especially in countries in Africa and the Middle East. No matter where your international organization is operating, an all-inclusive insurance policy with political violence included will help mitigate risk.
According to Middle East Insurance Review magazine, the changing times should encourage a reassessment of existing insurance terms and policies. Uncertainty can appear quickly in your country, and assuming you are covered could leave you exposed when it matters most.
For starters, look at your current insurance and determine:
- How you are covered and if the existing risks in your country are addressed
- Whether or not your insurance can withstand the stress of a real incident, such as a terrorist attack or large-scale riots
Demand for political violence cover increases
Across the world, incidents of political violence and civil unrest have begun to permeate local news sources and the public consciousness. As a result, the demand for proper international insurance solutions is on the way up so global businesses can continue safe, solvent operations abroad.
According to Lloyd’s, more people today are asking for coverage that addresses risks such as riots, strikes and military intervention. Where once only large organizations, including banks and property developers, were interested in political violence insurance, now more companies are looking into this type of indemnification.
Given the overall global trends emerging in relation to destabilization and unrest, insurance needs – and political violence insurance coverage – have become more complex. This is good news for international organizations and those living and working abroad, because it means more customizable international specialty policies can address a wider range of risks. With that being said, companies should take a look at their current policies and ensure that they have the right level of coverage for their country.