Marsh, a unit of Marsh & McLennan Companies, has introduced its new Mobile Asset and Commodity Expropriation (MACE) insurance facility, to meet the concern of multinational companies about the rise in political risks globally.
Marsh said that the product is available globally and it will provide up to $100m of cover per risk for plant, equipment and inventories located in foreign countries and territorial waters or while in transit between sites.
According to the Marsh, the new facility offers protection against abandonment, deprivation, expropriation, riot, strike, civil commotion, sabotage, terrorism, malicious damage, war and civil war, revolution, rebellion, insurrection and hostile act by a belligerent power.
The coverage can also be extended to cover third party blockade or quarantine and business interruption covering gross profit, revenue, gross earnings, loss of rental income, extra expenses and increased costs of working.
The insurer added that the product has no minimum premium requirement and has non-cancellable policy terms of up to three years. The facility is placed in Lloyd’s and the company market, co-led by two Lloyd’s syndicates.
Cover can be bought across a portfolio of assets, on a country-by-country or location-specific basis and can also be assigned to lenders.
Marsh Political Risks and Structured Credit business international head Julian Macey-Dare said as companies seek to strengthen their resilience, they are more acutely aware of the catastrophic effect that political risk losses can have on their assets and earnings. This product will help companies pursue growth opportunities in emerging markets with greater confidence.