With the recent uprisings in the Middle East, many companies may soon be unable to find sufficient insurance coverage to protect their assets and staff working and living abroad. According to a report issued by Willis Group, the uprisings have prompted insurers that currently offer protection against political risk to re-evaluate the terms and prices of their policies to correctly reflect the risk in both the Middle East and other volatile areas of the world.
The report states that traditional strikes, riots and civil commotion (SRCC) or terrorism cover is no longer sufficient protection. Instead, companies should instead consider purchasing full political violence insurance, which protects against financial loss as the consequence of insurrection, civil unrest, politically motivated sabotage, strikes, riots and civil commotion, armed uprising, coup d'?tat and civil war.
"Exposure to political unrest will only grow as global business continues to expand into new and often hostile territories where the threat of resource nationalism, creeping expropriation and supply chain vulnerability is increasing," said Grahame Millwater, Willis Group president. "Our message to companies around the world is to use their brokers to navigate the insurance options available for these risks and to identify any potential gaps in their coverage."