Law360 published an article by McGuireWoods partners Anthony Tatum, Joseph Englert and Tanya Greene examining whether, in light of recent global political instability and other factors, insurance companies will continue to acknowledge coverage and promptly pay losses under policies covering expropriation risks.
Titled “Securing Coverage for Investors’ Political Risk Claims in 2022,” the Jan. 26, 2022, article discussed the way political risk insurance products work and some of the arguments political risk insurers might raise to deny or delay payment of claims.
The authors noted that there are no set standard forms for political risk insurance coverage and that varied provisions can have a major impact on policyholders.
“During policy contract negotiations, as well as the claim submission and investigation process, careful attention must be given to the definition of ‘loss,’ the scope of exposures insured, exclusions to coverage, as well as provisions covering the recoveries, subrogation and assignment of claims,” they wrote.
The authors, along with partners Simon Hems and Shelby S. Guilbert Jr. and associate M. Laughlin Allen, also wrote a Jan. 19, 2022, McGuireWoods legal alert on this issue titled “In a Hard Global Insurance Market, Will Insurers Cover Political Risk Insurance Claims?”