Infrastructure Investing by Rajeev J. Sawant

Author:Rajeev J. Sawant [Sawant, Rajeev J.]
Language: eng
Format: epub
Published: 2010-02-28T16:00:00+00:00

Political Force Majeure

Political force majeure refers to the risk of catastrophic loss due to political events like politically motivated violence, war, civil disturbance, and so on. Investors usually hedge by purchasing insurance. Recently terrorism has been added to the list of dangers threatening investors with catastrophic loss. Unfortunately insurance sellers generally do not cover terrorism, and if they do there are likely exclusions for chemical, biological, and nuclear catastrophes. The next section examines the hedging tools available to investors in the form of insurance.

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