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Political Risk Insurance

Despite great opportunities, putting assets or investments into a country where the political situation is unstable can be very risky. Political Risk Insurance (PRI) covers you against a broad range of risks resulting from unpredictable events that could threaten your overseas investment.

  • Maximize the potential of your investment knowing you’re protected against unpredictable events.
  • Increase your access to cash. PRI can make your foreign venture more attractive to your bank.
  • Choose which risks you want to cover: transfer, political violence or expropriation

Protect your assets. Uncover the opportunities.

In some markets, political upheaval can happen overnight leaving your valuable assets unprotected against damage, seizure and expropriation. With PRI, you can choose coverage options that protect your business for many years against a host of political risks so that you can invest with confidence.

Give your investors and bankers peace of mind

When your bank and potential investors support your expansion plans - but not the politically unstable country you’ve chosen - PRI can alleviate their concerns by safeguarding your assets against a range of political risks.

You can also direct the proceeds from your policy to your financial institution, giving it added comfort to grant you a new loan or extend your credit for a new project.

PRI has you covered in many situations

PRI can insure you for up to 90 per cent of your losses.

Losses can result from the following political risks:

Breach of contract - Contracts can be broken when you least expect it—at significant cost to your business – when a foreign government doesn’t live up to its end of a contract or refuses to honour an arbitral award in your favour.

Creeping or outright expropriation - Unfortunately, foreign governments can seize, confiscate or expropriate your investment, sometimes without justification or an apparent reason.

Political violence - Terrorism, war, civil strife or other forms of political violence can damage or destroy your assets, or force you to shut down business operations for an extended period of time. Safeguard yourself against these risks.

Currency conversion or transfer - In times of economic crisis, foreign governments or central banks may impose restrictions on the conversion of the local currency to hard currency, or prevent hard currency from leaving the country.

Repossession - Foreign governments can prevent you from repossessing or re-exporting physical assets you have brought into the country (e.g. machinery, equipment, rolling stock, aircraft, etc.).

Non-payment by a government - Foreign governments may refuse or be unable to make scheduled loan payments or honour a financial guarantee, exposing you or your bank to non-payment risk.

EDC expertise - at your service

As the largest political risk insurance provider in Canada, we have the experience and the detailed market knowledge to assess and help you manage political risks.

Choose the policy that’s right for you

With PRI you have the flexibility to choose the risks that you want to cover and pay premiums only on those risks. Our experts will work with you to customize a policy that’s ideally suited to your business needs, regardless of size of your investment or the industry in which you operate. You can choose the period of time for which you need coverage and you can cancel at any time.


To qualify, your operations must generate economic benefits to Canada (e.g. job creation, contribution to GDP). Companies operating abroad should be aware that EDC is subject to a number of provisions and guidelines governing international trade.


Premium rates vary based on the type and number of political risks you insure and on a risk assessment that considers country, industry and transaction characteristics. Rates start as low as .25 per cent per annum.

Learn more

View our detailed product brochure (PDF)

• Call 1-800-229-0575 weekdays 9 am to 5 pm EST

Submit a question

Use our Application Forms to apply

Download an Application form (PDF)

Download an Application form (MS Word)

Important Information
The above information describes, in general, EDC services and is not a commitment to provide them. Only the documentation supplied by EDC, in connection with any transaction, provides the full detail and terms and conditions.

Working on a new contract?

Call 1-800-229-0575 weekdays,
9 am to 5 pm EST

Submit a question

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