Your credit insurance policy provides cover against insolvency and suspected insolvency. A payment that remains outstanding as a result will generally be covered if you meet the other policy conditions. One of the policy conditions is that a debtor or shareholder is not on a sanctions list. You can check this by checking the European sanctions list (freeze list) and the list of UN sanctions view. Be aware that this list changes daily.
Check Country Risk Map insurer
Suppose payment is still delayed due to a political cause, the insurance cover provides coverage for losses on debtors. This concerns companies or organisations based in countries to which political risk cover applies according to the Country Risk Map, provided the country or debtor or person is not on the sanctions lists. You can find a Country Risk Map on your insurer's website.
Tip: Also check whether you have included political coverage for Ukraine and Russia.
Overview of political risks
The following situations or events generally fall under political risk:
- Moratorium: deferral or suspension of a payment obligation by a company or a country.
- Currency transfer risk.
- A generally binding measure taken in the country of the debtor.
- War: except between the 5 superpowers.
- Natural disaster: a cyclone, flood, earthquake, volcanic eruption or tidal wave or other forms of natural disasters in the debtor's country.
- Impossibility of contract execution.
- Withdrawal of export licence.
- Government default: the failure or refusal of a government debtor to perform any provision of the contract. This covered cause of loss applies only if the credit limit decision states that the debtor is a government debtor.
Conclusion
It is not so easy to find out what coverage you have regarding political risks. Always check with us whether your claim is covered, as the situation is constantly changing.
