Political risk insurance covers losses arising from events such as confiscation, nationalization, or expropriation of the insured's property or from repudiation of a contract guaranteed by a sovereign entity or agency of that entity. Political risk insurance may also protect the insured against defaults in payment obligations if the defaults are attributable to political events.

Trade credit policies are available to insure against losses to particular accounts receivable or to portfolios of accounts receivable. Such contract repudiation policies may insure against defaults by foreign government agencies or private parties.

Insurance against risks from international operations is available from private insurers and from government agencies. The Export-Import Bank of the United States provides insurance for companies beginning export operations when those companies are unable to obtain private coverage. The Overseas Private Investment Corporation (OPIC) provides political risk insurance for investments in countries in which political factors make private insurance prohibitively expensive.

OPIC coverage is available for new projects or expansion of existing projects but not for existing projects. In addition to providing coverage in geographic areas where private insurance is not reasonably available, OPIC may also offer longer terms than available from private insurers and may provide coverage for expropriation that occurs over time from a series of events.

OPIC coverage may be available for losses of loans, equity, or other types of investments in overseas projects. Events such as loss of currency convertibility or transferability, property confiscation, and political violence causing property damage may be covered through OPIC. OPIC also provides business interruption coverage that may not be available from private insurers.

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