Political Risk Insurance is a type of Insurance which covers any losses to businesses caused by any revolution or political conditions in a country.
Political risk insurance is available for several different types of political risks which are mentioned below.
- Political violence, such as 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.
- Inconvertibility of foreign currency or the inability to repatriate funds.