Political Risk Insurance

The cover compensates suppliers or lenders for losses occasioned by actions or inactions of a government in the course of fulfilling cross-border contracts. For example, a Kenyan trader selling to Uganda may, depending on the size of the contract, wish to insure itself against political action that may arise from failure of the company to access foreign currency to meet its payment obligations to the Kenyan trader. Or a Ugandan lender to an exporter that relies on the Kenyan port may insure the facility against destruction of goods due to political violence leading to non-payment of facilities.

Currency Inconvertibility/Non-transfer (CI/NT)

Any action or inaction by the government which directly or indirectly prevents a corporate, usually a debtor, from legally converting from a local currency to settle its cross-border payment obligation, usually in a foreign currency.

Performance Confiscation, Expropriation, Nationalisation and Deprivation (CEND)

Covers a Loss resulting from any law, order, decree, regulation or directive made or administrative action taken by the Government.

Political Violence, Terrorism & Sabotage

Covers a Loss resulting from the destruction or disappearance of, or physical damage to, tangible assets because of Political Violence, Terrorism and Sabotage.

Embargo

Covers a Loss that is a direct and immediate result of an embargo or any other sanction imposed by a country.

Non-payment by government

The failure of the government or government-related entity to meet its obligation under a contract.