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.
