Political Risk Insurance covers short and medium term trade as well as projects and investments. The insurance protects against government action, inaction, or interference that would result in financial loss. It offers protection to the investor, supplier or lender against various risks such as:
Expropriation
Transfer Restriction
War
Civil Disturbance or Civil Commotion
Embargo
Arbitral Award Default
Related political risks include forced abandonment, selective discrimination, and “creeping expropriation” (a series of individual government actions which, taken together, effectively result in expropriation).