Responding to a new level of political risk
Undercover is a tailored and flexible policy solution providing cover for a variety of geopolitical exposures. Effective management of such risks is a crucial component of business success and Undercover can help companies by transferring some of those exposures to a single policy to protect cargo in transit and in store.
Smart. Tailored. Flexible.
Undercover combines cargo, war on land, terrorism, political violence and confiscation coverage for cargoes in transit and store.
Smart: Undercover provides a one-policy solution for multiple, geopolitical cargo exposures
Tailored: Undercover enables you to build bespoke coverage to suit your operations and risk profile
Flexible: Undercover offers a suite of solutions that can work in conjunction with your current cargo insurance arrangements
Benefits: One policy, one solution
This smart, tailored and flexible solution covers multiple risks in one policy that:
- Minimizes the potential of gaps in coverage
- Reduces the likelihood of possible disputes that may arise in the recovery of claims and also removes the need to establish the motivation behind an event (which can prove difficult during political uncertainty)
- Can be more cost-effective
- Is flexible: There is no requirement to purchase all sections of cover, giving cargo owners the flexibility to choose the specific cover their businesses needs
- Provides protection from rising insurance costs when the country's risk rating changes, as cover is purchased on a global basis
Perils included
- Transits by sea, land or air
- Goods in store, including stock where no transit is involved
- Political violence while in storage and during transit
- Terrorism while in storage and during transit
- Strikes, riots and/or civil commotion in storage and during transit
- Looting whether politically motivated or otherwise
- War on land extended to include storage exposures
- Revolution, rebellion and insurrection while in storage or on land
- Confiscation, appropriation, expropriation, seizure, requisition for title, detention and nationalization
- Deprivation
- Forced abandonment
Undercover illustrative claims scenario
An insured exports goods to the Middle East which are then stored in a warehouse. The warehouse is looted and later set on fire. At the time there is no formal definition as to how the troubles in the country are classified and were described in the press as a riot, civil commotion, insurrection and civil war.
The assured submits a claim for total loss of the goods due to fire. During the investigation it transpires that the warehouse was also used for the storage of government goods. Due to the turmoil in the country it is not possible to identify if the goods had been taken during the looting or whether they were destroyed in the fire.
Cargo Insurers decline the claim for the following reasons:
- The looters targeted the warehouse as it held government goods and were therefore acting for politically motivated reasons.
- If the goods were still in the warehouse at the time of the fire, the fire was due to civil war or insurrection.
- The political violence policy includes looting, however insurers decline the claim as the cause of the fire is not politically motivated.
- Covers looting whether politically motivated or not and claim would therefore be recoverable.
- It also includes losses due to fire and would again respond.
- As there is only one policy in force, there is no dispute as to whether the goods were in store at the time of the fire as both scenarios are covered.
Disclaimer
WTW hopes you found the general information provided here informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, WTW offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).
