Broker Check

Insurance Implications of Russia-Ukraine War

March 25, 2022
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In addition to all of the other disruptions caused by Russia's invasion of Ukraine, there will be losses that may be covered by insurance. Conventional property and liability insurance policies exclude war and government action. There are also exclusions for sanctions imposed on Russia. However, businesses who obtained political risk insurance before the crisis may be able to recover at least some of their losses.

Examples of actions that could be covered are Russia's nationalization of foreign business assets and impoundment of  aircraft.  Supply chain disruption and  contract frustration could also trigger coverage.

This war is a reminder - in today's world companies with foreign investments or operations must consider political risks.