Get Bespoke Political Risk Insurance
The lowest premium is contractually guaranteed for similar protection tailored to your goals, otherwise we pay the difference. Applicable worldwide.
👉 Our independent insurance engineers typically save clients 10–35% on political risk insurance while eliminating coverage gaps that could cost far more later. Our team also provides Full Claims Management with Cash Advance at Loss, which is outside of the purview of brokers.
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Insurance For War Explained
- Insurance for War can protect companies, organizations, and governments from lost revenues, financial defaults, and the physical or cyber destruction of assets.
- Companies can be subject to political risk including war risk and it is important to think about insurance for war ahead of any major political events or frictions.
- The conflict between Russia and Ukraine in 2022 has showed us the importance for companies to carry insurance for war to protect their lost revenues.
- This applies to any type of company that got or can be impacted by a war, whether Russian, Ukrainian, European, or other company that saw or expects a drop in revenue due to a conflict.
- While the probability of occurrence of a war is quite low, insurance for war is important because the severity or damage caused by a war can be so great as to wipe out years of profitability, not including the potential for physical damage or a complete wipe out of a company's premises and infrastructure.
Political Risk vs. Political Violence vs. Terrorism
Political risk insurance offers the broadest coverage, which includes both war coverage as well as terrorism coverage and various other coverages including but not limited to forced divestiture, inability to import/export, currency inconvertibility, expropriation, and contract frustration.
Political Violence insurance offers coverage for war, civil war, riot and civil commotion, revolution, in addition to terrorism and sabotage.
Terrorism and Sabotage coverage focuses only on acts of terrorism and sabotage.
What Is Political Risk Insurance
Insurance indemnifying organizations and governments against financial losses and/or physical and cyber losses due to a specific type of political risk including war. Political risk insurance is technically much broader than insurance for war because it encompasses other forms of political risk such as insurrections, revolts, protests, etc.
Political Risk Insurance Cost
- Cost varies greatly depending on the jurisdiction of the company and the assets to be insured.
- Low risk insurance for war will cost under 1% of the limit of insurance.
- Higher risk insurance for war can cost over 25% of the limit of insurance. This is subject to minimum premiums.
- Most insurers will have a minimum premium of $10,000 or more for full Political Violence insurance regardless of the amounts and the terrirories to be insured.
War Risk Insurance Cost
- War Risk Insurance cost is a percentage of Political Risk Insurance Cost subject to minimum premiums and risk details.
- Please reference the above section.
Political Risk Insurance Providers
- Allianz, AIG, Travelers, Zurich are to name a few providers of insurance for war, aka. political risk insurance companies.
- Political risk insurers distribute their products through various brokers, and each broker has its own in-house capabilities with respect to political risk insurance.
- It is important to audit and reword the insurance wording to ensure it is tailored to the political risk details facing a specific company or investor.
- Contact DeshCap today to tailor political risk insurance while making providers compete for your business to reduce your net cost.
War Risk Insurance Companies
War Risk Insurance Companies include several Lloyd's syndicates and insurers including but not limited to Talbot, Chaucer (UK), Sompo, Liberty International.
Choosing a Political Risk Insurance Broker
- There are various brokers who can distribute political risk insurance including insurance for war.
- They range from local to regional to international brokers: Marsh, Aon, Willis to name a few.
- Contact DeshCap today to choose the right broker through an insurance broker rfp that minimizes political risk insurance cost.
Political Risk Insurance Example
Political Risk Insurance would indemnify businesses or governments for lost revenue or damaged assets as per the following examples:
- Critical infrastructure damaged in Ukraine;
- Russian media outlets lost revenue due to reduced viewership in Europe;
- Oil and Gas Infrastructure damaged due to the 2026 Iran strikes on the Arabian Gulf.
FAQs for Political Risk Insurance
1. What is Political Risk Insurance Coverage?
Political Risk Insurance Coverage protects businesses and investors against financial losses arising from government actions, political instability, expropriation, currency inconvertibility, contract frustration, and political violence.
It is commonly used by multinational corporations, infrastructure developers, lenders, and energy companies operating in emerging or conflict-prone markets.
2. What does Political Risk Cover typically include?
Political Risk Cover can include:
• Expropriation or nationalization
• Breach of contract by a sovereign entity
• Currency inconvertibility and transfer restrictions
• Political violence and civil unrest
• Forced abandonment of assets
Coverage structure varies depending on country risk profile and investment structure.
3. Is Political Violence Insurance the same as Political Risk Insurance?
Political Violence Insurance is typically a component of Political Risk Insurance Coverage.
Political Violence Insurance specifically protects against:
• War
• Civil war
• Terrorism
• Sabotage
• Strike, riot, and civil commotion
Political Risk Insurance may also extend to government actions that are not violent but still financially damaging.
4. What is War Risk Insurance and who needs it?
War Risk Insurance is designed to cover losses arising directly from war or war-like events.
It is most commonly used for:
• Maritime shipping
• Aviation
• Energy infrastructure
• Cross-border trade
• Contractors operating in high-risk regions
Many commercial insurance policies exclude war by default, making standalone War Risk Insurance essential for certain industries.
5. How much does Political Risk Insurance cost?
Political Risk Insurance cost depends on:
• Country risk rating
• Investment size
• Sector (oil, mining, infrastructure, finance)
• Term length
• Deductible structure
Premiums are typically expressed as a percentage of insured investment value and vary materially based on geopolitical conditions.
6. How does Political Risk Insurance differ from standard commercial insurance?
Standard commercial policies (property, CGL, D&O) often exclude:
• War
• Government seizure
• Currency restrictions
• Political uprisings
Political Risk Insurance fills these structural gaps and protects cross-border capital deployment.