As globalization increases, more corporations are transacting across the globe than ever before, thus increasing the level of exposure to political risk. Political Risk coverage enables investors to realize the full upside potential of foreign investments, while mitigating the exposure of often catastrophic and unforeseen political events. Krauter & Company brokers have substantial experience strategizing risk management for multinational firms with subsidiaries located in geographically emergent markets or frontier economies — where increased unrest and civil war ensue.
Krauter has the know-how and expertise to work on all types of political risk including, but not limited to:
- Political violence, such as revolution, insurrection, civil unrest, terrorism or war
- Governmental expropriation or confiscation of assets
- Governmental frustration or repudiation of contracts
- Wrongful calling of letters of credit or similar on-demand guarantees
- Business interruption
- Inconvertibility of foreign currency or the inability to repatriate funds
Providers of political risk insurance include public agencies and private insurance companies. With a wide range of options available, the use of a specialized broker is highly recommended. Krauter & Company has the market contacts and the know-how to provide its clients with a customized political risk program to protect foreign investments.