As U.S. companies plan to expand their business activities in emerging markets, many are looking for ways to manage potential risks associated with these initiatives. Marsh, the world's leading insurance broker and risk advisor, will hold a webcast on Wednesday, March 31, at 11 a.m. ET on managing political risk in emerging markets, including the use of contract frustration insurance to help protect a company’s revenue stream and facilitate increased investment. In today's credit environment, insurance is a linchpin for firms seeking to aggressively expand sales and control key risks.

"While concerns about potential commercial and political risks have kept a number of businesses from making the investments they need to expand in emerging markets, companies that take steps to protect their cross-border contracts from these exposures can be more aggressive in their pursuit of opportunities,” said Evan Freely, global leader of Marsh’s Political Risk & Trade Credit Group. “For example, contract frustration insurance can give businesses the financial protection they need to compete more effectively for new customers and build or expand relationships with suppliers in countries located throughout Latin America, Asia, Africa, the Middle East, and in Russia."

The webcast, Jumpstart Sales and Maximize Opportunities through Contract Frustration Insurance, will feature presentations by James Cunningham, leader of Marsh’s Political Risk & Structured Credit Practice for Europe, the Middle East and Africa (EMEA) and Stephen Kay, U.S. leader of Marsh’s Political Risk & Structured Credit, to be followed by a question-and-answer session.

In addition to helping enhance a company’s ability to offer customers more flexible payment terms, contract frustration insurance can help them access more working capital because they can assign claims proceeds on insured contracts to their bank. Businesses may also use the coverage to help protect against the financial consequences of losses related to certain credit and political risks associated with export contracts. The coverage can also help insured businesses defend against losses from the calling of various contract guarantees due to political risks and unscrupulous customers.