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Political Risk Insurance

Emerging markets present great opportunities to expand the scope of your business, diversify your customer base, and increase sales. In some markets, however, political upheaval can happen overnight, leaving you exposed to a broad range of risks that could threaten your international business. Our Political Risk Insurance (PRI) provides flexible solutions that can protect your balance sheet from such unpredictable realities.

Political Risk Insurance will:

  • Safeguard the value of your overseas assets.
  • Protect your access to your foreign held funds.
  • Maximize the potential of your foreign investment knowing that you’re protected against uncontrollable political events.
  • Protect your company against non-payment or contract cancellation by a foreign government buyer.
  • Increase your access to cash. Political Risk Insurance can make your foreign venture more attractive to your bank and potential shareholders.
  • Cover you against risks that are not typically covered by property insurance.

Risks covered

The risks you wish to insure against are completely up to you. Here are the options:


Foreign governments could seize, confiscate, expropriate, or prevent you from repossessing or re-exporting your physical assets brought into the country. The same types of events could affect your foreign subsidiary.
*PRI of Assets and PRI of Investment

Political violence

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

Currency inconvertibility and non-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.
*PRI of Assets and PRI of Investment

Non-payment by a government

Foreign governments may refuse or be unable to make scheduled payments or honour a financial guarantee, exposing you or your bank to non-payment risk.
*Contract Frustration Insurance and Non-Honouring Sovereign

Political Risk is a growing concern

Your political risk insurance options

Political Risk Insurance of Assets – Protect your physical assets or cash accounts deployed in foreign markets against the risks of government expropriation, political violence, and currency inconvertibility and non-transfer.

Foreign Funds Insurance – Ensure access to your cash when foreign governments take administrative actions which stop businesses from converting local currency into dollars and/or transferring dollars out of that country.

Political Risk Insurance of Investment – Safeguard the value of your investment in a foreign subsidiary against government expropriation, political violence, and currency inconvertibility and non-transfer.

Contract Frustration Insurance (CFI) Sovereign Buyer – Insure your receivables under contract with a foreign government buyer against both commercial and political risks.

Accessible and experienced

Work directly with an experienced team of Political Risk Insurance underwriters and risk analysts to reduce your exposure to political risks. Regardless of the size of your business or your exposure, we can provide you with a range of coverage options.


To qualify, your operations must generate economic benefits to Canada (e.g. job creation, contribution to GDP). Companies operating abroad should be aware that we are 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 and transaction characteristics. Rates start as low as 0.1 per cent per annum for one risk.

Learn more

View our PRI of Assets and Investments brochure (PDF)

Do you have money in a bank account abroad? (PDF) 

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

Submit a question

Read about managing political risk (PDF)

Use our Application Forms to apply

Download the Political Risk Insurance Request form (PDF)

Download the Political Risk Insurance Request form (MS Word)

Download the Contract Frustration Insurance Application form (PDF)

Download the Contract Frustration Insurance 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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