War & Terrorism & Political Risk

War & Terrorism and Political Risk exposures are increasing every day, and many industries face the serious threat of incident. We offer coverage that will protect many types of businesses, operating in Canada and throughout the world.

War & Terrorism coverage is available for the following types of risks:

• Aviation — We can cover hull war along with excess third-party war liability for aviation risks.
• Marine — We can provide physical damage coverage for hull and machinery of vessels against war risks including mines, explosives, malicious damage, piracy, sabotage, terrorism, blocking and trapping. We also provide coverage for protection and indemnity risks (i.e. crew, pollution) as a result of a war peril.
• Land — Our products respond to claims arising out of war, terrorism, strikes, riots and civil commotions, including crucial business interruption coverage.

Political Risk refers to the negative consequences that result from the action or inaction of the government. It is usually highest in developing countries where the economy or politics are unstable. Political Risk Insurance can mitigate the negative impact of these risks, and assist companies to grow their businesses.

We offer coverages for Political Risks in four broad areas:

1) Asset (Investment) Protection — Coverage for assets and investments in foreign countries for losses due to confiscation, expropriation, nationalization, deprivation (CEND) and forced abandonment.

2) Contract Frustration — coverage for losses due to the non-performance of a contract caused by a political event or the act of a government entity. Perils include:

• Inability to convert or transfer local currency into another currency or out of the country.
• Breach or cancellation of contract by the foreign government
• Imposition of trade embargoes
• War and other related perils

3) Political Violence — Coverage can also be extended to cover loss due to political violence such as:

• Terrorism
• Strikes
• Riots
• Civil Commotions
• War

Business Interruption due to the above.

4) Personnel Risks covered  include:

Extortion  is no longer a problem confined to Africa and South America. It’s increasingly prevalent in the UK, Ireland, Continental Europe and other developed markets. Extortion threats of damage to property or bodily injury are rising, while terrorism through computer viruses is a very real risk for today’s businesses.

Kidnap and Ransom are very real and growing threats in today’s world. While the most vulnerable companies to kidnapping are those that have employees based or traveling overseas, organizations that have high profiles, handle large amounts of cash, or work with sensitive information or technologies are equally at risk. While rarely publicized, extortion against corporate assets or products is increasing rapidly in North America. Examples include extortion involving: bodily injury, property damage, pollution, cyberspace, and intellectual property. Companies need to prepare for these threats that can originate or occur virtually anywhere in the world.

Kidnap and Ransom Insurance is a benefit for any company with employees either traveling to or based overseas, particularly Latin America, Asia, Eastern Europe and Africa. It is particularly suited to cash rich or high profile companies operating domestically or in other countries, as well as for manufacturers or retailers of consumer goods.

Risks Covered:
Kidnap/Alleged Kidnap: a seizure or detention of an insured person for the purpose of demanding ransom monies.

Extortion: payment demands following a threat to kill or injure and insured person, damage property, contaminate products, divulge trade secrets or destroy electronic data by computer virus.

Wrongful Detention: involuntary confinement by a government entity or insurgent organization resulting from the arbitrary or capricious act of an agent of or with the tacit approval of said entity or organization.

Hijacking: illegal holding under duress of an injured person for more than six hours while traveling on any aircraft, motor vehicle, or waterborne vessel.

Coverage Includes:

• death or dismemberment benefits arising from a covered incident.
• loss in transit of payment
• recall costs
• ransom/extortion payment
• judgment, settlement and defence costs
• consulting costs
• business interruption
• related expenses: consultants salary continuation, personal financial losses, medical costs, rest and rehabilitation, travel and accommodation, loan interest payment, reward, interpreter, forensic analysis, other reasonable and necessary expenses.