Political risk insurance is a type of insurance that can be taken out by businesses of any size against political risk.
The risk that revolution or other political conditions will result in a loss. Political risk insurance is available for several different types of political risk, including political violence. Such as revolution, insurrection, civil unrest, terrorism or governmental expropriation or confiscation of assets, governmental frustration, or repudiation of contracts, wrongful calling of letters of credit, or similar on-demand guarantees business interruption. And inconvertibility of a foreign currency or the inability to repatriate funds, as with any insurance,
The precise scope of coverage is governed by the terms of the insurance policy, the underwriting of political risk insurance is a dynamic growing business as globalization increases. There are more corporations doing more business and more places around the world with each passing year. Some of the changes occurring in the business or high growth, new product offerings, and a greater role for private capital while political risk insurance policies are sometimes manuscript for specific situations.
The major political risk insurers have standard forms for the coverage is that the issue for complex or larger investments, manuscripted policies are the norm and there may be several insurers providing cover in the form of syndication through Co insurance, or perhaps with the participation of a reinsurer on a facultative basis.
Providers of political risk insurance include public agencies and private insurance companies, with there being a wide range of options available, the use of a specialized broker is highly recommended.