force majeure insurance
Provides coverage for financial losses arising out of the inability to bring
a project to completion. The coverage encompasses delays as well as total termination
of the contract resulting from events totally outside the control of the contractor
(i.e., fire, earthquake, war, revolution, flood, and epidemics). Types of losses
covered by the policy include continued debt servicing, loss of income, ongoing
fixed costs, spoilage, and related contingencies. The coverage has a very limited
domestic market but is commonly placed as a political risk coverage for contractors
working in foreign countries.
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CPI IX.J