Political Risk Insurance

Operating and investing in emerging markets is often necessary to follow opportunities. Oil and gas exploration, infrastructure and construction projects, setting up a manufacturing operation to take advantage of lower production costs; these all present opportunities, but also present unpredictable political risks that challenge even the most sophisticated companies.

These risks include:

  • War, civil strife, coups, sabotage, riots, terrorism
  • Confiscation, expropriation, nationalization and other improper and disruptive actions by the host government
  • Abrogation, repudiation or impairment of contract by the host government
  • Restrictions on the conversion and transfer of local currency

Political Risk Insurance provides a cost effective way to mitigate these risks, allowing U.S. businesses to take advantage of commercially attractive opportunities in emerging markets.

Coverage can be arranged through the Overseas Private Investment Corporation (OPIC) or the private insurance market.