Political Risk Insurance – inventories (CEND)
Traders and other international companies often take possession of goods in the origin country and/or maintain inventories in the destination country. Both may be high-risk countries.
While standard physical damages are usually covered under marine cargo policies, this is not always the case for political risks or when covered, coverage is often cancelable.
Cover can be arranged in the Political Risk market to protect inventories in high-risk countries against risks such as confiscation and expropriation by government, export/import embargoes or restrictions or damage or destruction caused by war, terrorism and political violence. Such policies are often referred to as CEND: Confiscation, Expropriation, Nationalization and Deprivation.