Political Risk Insurance
Political Risk Insurance
Political Risk Insurance protects businesses with overseas operations, investments, or contracts from losses caused by government actions, political violence, currency restrictions, and other non-commercial risks. It is essential for companies operating in emerging or unstable markets where political instability can disrupt trade, investment, or project delivery.
Cover typically includes expropriation, civil unrest, war, government contract breach, and currency inconvertibility. It is especially valuable for exporters, contractors, developers, financial institutions, and investors with exposure to politically sensitive regions.
At Angelic Insurance, we help Australian businesses and investors access political risk cover from leading global insurers. Our brokers provide general advice to help safeguard your overseas assets, projects, and income streams from unpredictable government or political actions.
How It Works
We help structure protection for international risk exposures that fall outside the scope of conventional property or liability policies.
Share your international exposure
We review your overseas projects, assets, contracts, and counterparties including locations, investment types, and political environments.
Assess risk type and severity
We help identify risks such as government interference, regulatory changes, civil unrest, or currency controls based on region and industry.
Compare insurer offerings
We access global insurers that specialise in political risk, export finance, and foreign investment protection.
Tailor your cover
Choose protection for project value, equity investments, receivables, or assets located in foreign jurisdictions.
Policy activation and documentation
We finalise coverage terms and provide documentation to support contracts, lender requirements, or export agreements.
Ongoing support for project or policy changes
We assist with policy adjustments, risk reviews, and claims if a political event impacts your operations or agreements.
Why You Need It?
Operating abroad comes with opportunities but also with political and regulatory uncertainty. This cover protects your capital and contracts from disruption.
Covers expropriation or nationalisation
If a foreign government seizes or restricts access to your business assets, you may be compensated for the loss.
Protects against political violence
Riots, civil unrest, war, or terrorism that damage your property or halt your operations may be covered.
Guards against contract frustration
If a government breaches or cancels a contract, cover helps recover invested costs and lost income.
Manages currency inconvertibility
When foreign governments restrict the ability to convert or repatriate local earnings, coverage helps offset the financial loss.
Supports investment confidence
Having insurance in place helps satisfy investors, lenders, and boards that risks are being responsibly managed.
How Angelic Insurance Can Help?
We help Australian firms secure practical, cost-effective political risk coverage with access to specialist underwriters and international markets.
Access global political risk markets
We work with Australian and global insurers with experience in frontier and developing economies.
Tailor cover to project or investment type
Whether it’s an infrastructure project, joint venture, manufacturing site, or long-term lease, we help structure fit-for-purpose cover.
Support export finance and DFAT-backed programs
We coordinate with government export programs and private insurers to support export growth and risk transfer.
Clarify exclusions and contract interactions
We guide you through common exclusions and help ensure alignment with foreign investment or PPP contract terms.
Claims and dispute guidance
If a political event occurs, we assist with documentation, claim preparation, and liaison with global insurers or government agencies.
Challenges Businesses Face Without Political Risk Insurance
Without cover, companies exposed to foreign jurisdictions may suffer unrecoverable losses due to circumstances outside their control.
Loss of assets to government action
Expropriation or forced nationalisation may result in loss of property, equipment, or land without compensation.
Frozen or restricted earnings
Currency controls or capital transfer bans can prevent you from accessing or repatriating profits from overseas operations.
Contract termination without remedy
Public-private partnerships or infrastructure projects may be halted due to regime change or corruption probes.
Civil unrest disrupting operations
Local conflict, strikes, or war may make it unsafe or impossible to operate, leading to project suspension or withdrawal.
Difficulty securing funding
Lenders may not finance international projects without political risk mitigation slowing your growth in emerging markets.
Case Studies: How Political Risk Insurance Helped Real Businesses
Case 1 – Seizure of equipment by government agency
An Australian engineering firm had equipment seized in a disputed tax audit by a foreign government. Political risk cover paid $240,000 in asset value and legal recovery costs.
Case 2 – Currency inconvertibility in Africa
A medical supplier could not repatriate earnings from a government contract due to a local currency freeze. The insurer reimbursed $85,000 under inconvertibility protection.
Case 3 – Breach of energy contract after regime change
A renewable energy developer in Southeast Asia lost a government-backed power purchase agreement after elections. The policy paid for loss of expected revenue over the contract term.
Case 4 – Civil unrest suspends port operations
A logistics company was forced to close a foreign facility during prolonged strikes and violence. The policy paid for fixed operating costs and employee relocation support.
Frequently Asked Questions
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