Much broader than traditional terrorism insurance, political violence insurance protects against financial loss as the consequence of insurrection, civil unrest, politically motivated sabotage, strikes, riots and civil commotion, armed uprising, coup d'?tat, and civil war.

Willis says that in the past companies operating in hostile territories have generally purchased SRCC or Terrorism cover as extensions to their Property insurance and other policies. However, the broker warns that the populous violence aimed at overthrowing unpopular regimes witnessed this year would not be covered by a stand-alone Terrorism insurance policy.

Willis advises that companies concerned with supply chain risk could consider alternative options to Political Violence cover including Trade Disruption Insurance, which can cover importers' loss of profits or revenue resulting from an import embargo, war, port blockage, supplier insolvency, or confiscation of goods. In some instances, Marine Cargo insurance can also be extended to cover the risks of strikes, riots and other acts of civil unrest.

Coverage is also available for the evacuation of staff under most corporate Kidnap & Ransom insurance policies which include a little-known Emergency Political Evacuation and Relocation extension. Some coverage for this type of risk is also afforded under group Personal Accident and Business Travel policies, though the scope of coverage varies considerably and is typically focused on business travellers versus expatriate staff, said Willis.

Commenting on the report, Willis Group President, Grahame Millwater said: “Exposure to political unrest will only grow as global business continues to expand into new and often hostile territories where the threat of resource nationalism, creeping expropriation and supply chain vulnerability is increasing. Our message to companies around the world is to use their brokers to navigate the insurance options available for these risks and to identify any potential gaps in their coverage.”

Click here to read the full Willis Political Risk Report.

Willis Group Holdings plc is a leading global insurance broker. Through its subsidiaries, Willis develops and delivers professional insurance, reinsurance, risk management, financial and human resource consulting and actuarial services to corporations, public entities and institutions around the world. Willis has more than 400 offices in nearly 120 countries, with a global team of approximately 17,000 employees serving clients in virtually every part of the world. Additional information on Willis may be found at www.willis.com.