Importers and exporters face all manner of risks even when trading internationally. These include marine transit, financial and political risks. John Pile of Owens & Davern says even when dealing with friendly countries, political risks still pose a threat to the cargo.
A hypothetical scenario could be, for instance, if the USA were to slap restrictions on the importation of sensitive electronic equipment to SA in retaliation to an arms deal with Syria.
In such an instance, says Pile, goods could already be at sea en route to SA. The potential losses to the importer could be enormous if he was not adequately insured.
It is precisely this kind of foresight that Owens & Davern specialise in, he says.
The linking of export credit insurance covering commercial and political risks, combined with the correct marine, transit and confiscation cover, provides insurance for a full range of international trade risks.
Risks of this type abound, particularly in countries that are politically unstable or do not have hard currency to pay for goods.
In one example a company was paid out R60m for losses sustained when Unita broke the peace agreement several years ago.
Pile says Owens & Davern will assist companies put together a suitable package to cover all their risk requirements.
We are a small firm, and therefore highly specialised, he says. By remaining focused it provides clients with a personalised service.
