Insurance is available for numerous types of political risk events. Exact coverage will depend on the specific terms of the policy, but in general the risks under political risk coverage include:
- 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
Inconvertibility of foreign currency or the inability to repatriate funds.