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Marsh Inc. (ID: 14116)
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News: Press Releases Features & Articles Resources for: Large Organizations Mid-Size Businesses Small Enterprises Private Clients Associations & Affinity Groups MMC Stock Price 45.9900 N/A Delayed 20 minutes Related Marsh Sites Contact Us Site Guide Home Services & Solutions Global Offices Careers About Marsh Choose Your IndustryAutomotiveAviation & AerospaceCableChemicalsConstructionDesignEntertainment & MediaEnvironmentalFinancial InstitutionsForest ProductsGamingHealthcareHigher EducationHospitalityInfrastructureLife SciencesMarine and EnergyMiningPower and UtilitiesPublic EntitiesReal EstateRetailSportsTechnologyTelecommunicationsTransportation Choose Your Risk IssueBusiness Continuity ManagementBusiness InterruptionCaptivesCasualtyCrisis ManagementDirectors & Officers LiabilityDisaster RecoveryE-commerce/E-businessEmergency Response PlanningEmployment/WorkplaceEmployment Practices LiabilityEnvironmentalIntellectual PropertyMarine & EnergyNatural HazardsOperational RiskPolitical RiskProduct LiabilityProfessional LiabilityPropertySupply ChainSuretyTrade CreditWorkers' CompensationWrap-Ups For companies conducting business in developing or emerging countries, the loss of mobile assets stemming from politically motivated acts of violence can run into many millions of dollars. More... What's New A digitized replay of the April 7th New Reality of Risk audio conference, "Doing Business Overseas," is now available. More... Risk Reports In-depth reports on timely risk management topics. Now available: RiskLine, customized news briefs on critical business issues, delivered via e-mail. Test Your Limits -- Compare your liability limits to your industry peers. Workers Compensation -- Compare your losses with others in your industry. Directors and Officers Liability -- Benchmark your liability with other companies. Crisis Readiness -- Get an analysis of your organization's crisis readiness plan. Protecting Mobile Assets Overseas April 5, 2004 As political instability in parts of the world continues, companies that conduct business in developing or emerging countries are increasingly vulnerable to political risks, including terrorism, war, and other types of politically motivated violence. Such events can produce losses and negatively affect a firm's financial stability. In particular, the loss of mobile assets -- such as construction, telecommunications, or medical equipment -- from expropriation (a government's seizure without compensation), or the revocation of export licenses, can run into many millions of dollars. "With the events of September 11, the war in Iraq, and the continuing threats of terrorism, many companies are now more alert to potential losses resulting from politically motivated acts of violence," says Julie Martin of Marsh's Political Risk Practice. In regard to protecting their mobile assets, companies are seeking advice to sort out the types of political risk coverage available. Specialists in Marsh's Political Risk Practice can help clients assess potential losses of their mobile assets, based on expertise about the client's industry sector and the level of political risk in the areas in which the client wants to do business. Marsh specialists can also help clients ensure that several key areas of coverage are addressed in political risk questions for mobile assets, including: Is the equipment protected against acts of terrorism only? How would the policy respond to events of war, civil war, insurrection or revolution? Does the policy handle situations in which companies are forced to abandon the equipment? What is the policy's basis for compensation-book value or replacement cost? Are biological and chemical attacks covered? Is the premium fixed? Is the policy non-cancelable? Is the equipment protected against confiscation and seizure? Does the policy protect the company against the inability to remove the equipment at the end of the lease or contract? Fortunately, specially designed insurance solutions may alleviate some of these risks. For example, for companies that are constructing facilities, or contractors using equipment for building roads or other infrastructure, or leasing or rental firms providing containerized power or other mobile equipment, contractor's comprehensive plant and equipment policies can offer a solution. This coverage can encompass mobile assets that are used or leased in a single country, or can cover a portfolio of countries. The insurance is provided either through the public or private sectors and is typically available for up to 90 to 100 percent of the book value or replacement cost of the assets. "Marsh has placed a number of political risk insurance programs for mobile assets on a portfolio and on a stand-alone basis for companies whose potential for growth lies in emerging markets," Ms. Martin says. "These clients need to ensure that they will be able to repair, replace, or repossess these assets." Contact: Julie Martin Political Risk Practice 202-263-7813 Julie.A.Martin@marsh.com For companies conducting business in developing or emerging countries, the loss of mobile assets stemming from politically motivated acts of violence Marsh Inc.