As the war in Ukraine continues to escalate, businesses are increasingly looking to their political risk insurance coverage to mitigate risk for international operations. In a feature interview with Law360, Pasich LLP Partner Kirk Pasich discussed political risk insurance implications in the war and what commercial policyholders need to be aware of.
“Political risk insurance policies are designed for situations like the Russia-Ukraine War,” he said. “PRI policies can respond if an insured’s facilities are destroyed, when it is unsafe for the insured’s staff to work, when a foreign government takes over and nationalizes its business, and when the government does something that changes the terms of a contract in a material way.”
Pasich went on to talk about:
- The top political risk insurance companies
- Whether companies will be covered for indirect effects of foreign government actions
- Why policyholders evaluating risk should not wait to reach out to their insurers
He added that attorneys working with political risk insurance matters “really need to do their homework” for this specialized insurance.
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