Political Risk Insurance: A Lender's Guide

Summary

Political Risk Insurance (PRI) addresses potential risks arising from operating in a foreign country with less than stable political conditions. The availability of PRI may enable a project to become bankable when it would otherwise not be due to these conditions. This practice note provides an overview of PRI, including its historical development, current providers in international markets, standard coverage and exclusions, and other important considerations. This practice note is appropriate for counsel to lenders and investors considering the use of PRI to insure against risks in cross-border or international project finance.