Political risk insurance is a type of insurance that can be taken out by businesses, of any size, against political risk—the risk that revolution or other political conditions will result in a loss.

Political risk insurance is available for several different types of political risk, including (among others):


• 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

As with any insurance, the precise scope of coverage is governed by the terms of the insurance policy.