Political Risk Insurance (PRI)

By December 2, 2021No Comments

A type of insurance which covers the risk that losses will be caused by country or political issues, such as:

  • Political violence – revolution, insurrection, civil unrest, terrorism or war;
  • 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 foreign currency or the inability to repatriate funds

Such insurance is typically provided by private sector insurance companies, Export Credit Agencies and Multilateral Agencies.