Political conflict risk insurance
Protects your company against losses resulting from damage to assets resulting from a political conflict or events related to such.
Insurance available from 16 June.
To receive an offer, contact your insurance consultant or apply for a consultation.
In regard to damage resulting from political conflicts, what kind of events are covered by political conflict risk insurance?
- War and civil war
- Acts of terrorism and sabotage
- Mass disorder
- Uprisings and coups d’état
Why buy political conflict risk insurance?
- Unprecedented opportunity to insure your company’s assets against a risk that standard commercial property insurance does not usually cover.
- Separate insurance agreement – it can also be purchased by businesses that are not BALTA commercial property insurance customers!
N.B.
The insurance does not cover losses if they arise as a result of a war between two or more global powers: the United States of America, the United Kingdom, France, the Russian Federation and China.
Frequently Asked Questions about Political Conflict Risk Insurance
Political conflict risk insurance is available to any company – it can be purchased by existing BALTA customers, customers of other insurers, as well as companies that are not customers of any insurer.
Political conflict risk insurance can be purchased to insure a company's buildings and other assets – plant and equipment, as well as stocks of raw materials and goods.
No, it provides protection for specific political conflict risks that are typically not covered by standard commercial property insurance. Political conflict risk insurance will not cover risks included in standard commercial property insurance, such as fires or damage unrelated to political conflicts, natural disasters, pipe leakages, and similar events.
No, the insurance does not cover losses if two or more of the military superpowers are directly involved on opposing sides of the war: the United States of America, the United Kingdom, France, the Russian Federation, and China.
The insurance does not cover losses arising from:
- nuclear weapons, radiation, or radioactive contamination – both in times of war and peace;
- confiscation, nationalisation, or expropriation of property through government decisions;
- war, if it occurs between at least two of the following countries: the United States of America, the United Kingdom, France, the Russian Federation, and China;
- suspension of business, loss of income, and other indirect losses;
- the impact of chemical, biological, or electromagnetic weapons;
- data loss, IT system disruptions, or cyberattacks;
- fines, sanctions, or breaches of contractual obligations.
No, political conflict risk insurance does not provide compensation for losses caused by a suspension of business or downtime.
War is considered to be instances where an armed conflict takes place between two countries, regardless of whether the countries have declared hostilities or not. Political conflict risk insurance will indemnify losses if the customer's property has suffered as a result of such an armed conflict, for example, if damage has been caused by a drone launched by one of the warring nations.
Yes, political conflict risk insurance will cover losses arising within the framework of hostilities between Russia and Ukraine, including if drones launched by these countries enter our national territory and cause damage.
War – the use of physical force between two sovereign states to achieve any objective, an armed conflict between sovereign states, or declared or undeclared hostilities between sovereign states.
Political conflict risk insurance is available to all types of companies, regardless of their line of business and location – insurance is available for properties throughout the territory of Latvia.
To verify that the incident is related to war or another event corresponding to the political conflict risk, BALTA will take into account information provided by competent state authorities.
Yes, for customers who have already insured their commercial property with BALTA, political conflict risk insurance will be available at a lower price.