Political risk insurance covers losses caused by government action or political events rather than commercial failure: expropriation or creeping expropriation, inability to convert or transfer currency out of a country, war and political violence, and a state counterparty’s breach or repudiation of an undertaking. No standard wording governs it. Cover is assembled policy by policy, and what you have is exactly what the wording grants, less exclusions that often carve back a substantial part of the apparent grant. The negotiation that matters is over the triggering definitions — how long a transfer must be blocked before inconvertibility bites, what degree of interference counts as expropriation as against ordinary regulation, whether an arbitral award must first be obtained and go unpaid. Read those before the limit.
Why this entry carries no source list. This lexicon cites an official primary source wherever one exists and says plainly where none does. No body defines this term: it is commercial vocabulary, and what it means in any particular deal is whatever the document says. Citing a bank’s product page, an insurer’s brochure or a consultancy’s explainer would dress one firm’s usage as a general rule. The paragraph above therefore ends by naming what to read instead of the word.