Political Risk

PRI coverage acts as a safety net against policy decisions or actions by a government or political forces. It can cover risks such as:

• Political violence, which typically includes civil war, coup d’état, insurrection, revolution, sabotage, strikes and riots, terrorism, and war that cause physical damage to, or abandonment of, assets or operations and the related loss of business income.
• Expropriation by the government of assets or operations, including a prevention of repossession of assets by a creditor.
• Restrictions on the conversion of local funds to hard currency, or the transfer of funds offshore, as part of remitting dividends, debt service, or other cash flows generated in-country to an insured.
• Arbitration award default related to breach of contract by a government entity.
• Credit risks, such as sovereign non-payment.

Any corporation (including commodity traders), bank, non-bank financial institution, or public agency with international assets or investments should consider political risk insurance.

Political risk insurance enables you to mitigate your risk, and provides comfort for contracts, investments, projects, operations, assets, equipment, and stocks of commodities in higher growth but volatile markets. It can facilitate debt financing, the making of equity investments, and the backing of foreign projects or investments in higher risk countries.