The US market will now have access to Mosaic Insurance’s political risk coverage, thanks to the introduction of their arbitration award default insurance (AADI) policy.
In high-stakes disputes or cases where a state has a history of financial defaults, a new product is developed to lessen the non-payment risks connected with arbitration verdicts.
Its secondary goals are to make it easier for companies to cash in on possible gains from arbitration rulings, as well as to calm down claimants and litigation financiers.
Not only that, it safeguards administrative and financial losses that may occur during arbitration or enforcement actions by providing extensive coverage for the values of arbitral awards.
Tamar Katamadze, chosen to head the product for Mosaic’s political risk section, stated, “Arbitration award default insurance revolutionizes the landscape for claimants, law firms, and litigation funders engaged in international arbitration.”
“This solution equips clients to skillfully manage duration and liquidity risks throughout the entirety of arbitration proceedings, including award recognition and enforcement.”
In light of the current “geopolitical and economic turbulence,” Finn McGuirk—the world’s leading expert on political risk—has also stressed the importance of AADI.
He went on to say that AADI is becoming more and more important since it shields investors from sovereign default and enforcement risk in the tricky world of international arbitration. “We’re excited to include this cutting-edge coverage on our list of offerings.”
Mosaic’s press release states that its AADI considers situations both before and after the implementation of an award. Each risk can be covered up to $65 million, and the policy lasts for five years (with extensions possible based on specific circumstances).
Mosaic has recently debuted a new technology E&O insurance policy tailored to companies that focus on AI, VR, educational tech, IT consulting, data analytics, SaaS, and peer-to-peer platforms.
