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Political Risk Insurance (TCU)

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Euler Hermes’ Political Risk Insurance (TCU) offers protection to customers who are looking for security as they move into new export markets and seek opportunities along new global trade routes.

By mitigating risks such as confiscation, expropriation, and nationalization, political violence, non-payment and more, this specialized solution helps clients take advantage of attractive investment and financing opportunities in emerging markets.


Euler Hermes Political Risk Insurance provides a number of benefits:
  • Pressure relief of financial institutions’ country lines
  • Capital relief for financial institutions
  • Balance sheet protection for investors against political uncertainty
  • Possibly more favorable lending terms for investors and exporters



Political Risk insurance is designed for leading multinational companies, including financial institutions, exporters, investors and multilaterals.



  • Confiscation, Expropriation and Nationalization (“CEN”) protects companies against the financial loss of an investment / asset due to confiscation of assets by a foreign government. The product can be expanded to include Political Violence (“PV”) which protects the policyholder against physical damage to property caused by a politically motivated event such as war, civil war, insurrection, revolution, rebellion, coup d’état, strikes, riots, civil commotion, sabotage or terrorism. Policy add-ons include:
    • Currency Inconvertibility (“CI”) / Exchange Transfer (“XT”), which is the inability to convert local currency into hard currency and the subsequent inability to transfer these funds out of the host country.
    • Broadened coverage, which can include deprivation, forced divestiture, forced abandonment, selective discrimination, business interruption and non-repossession of assets.
  • CEN Lenders (“Lenders Form”) protects the financial institution against the default of a scheduled loan payment due to confiscation, expropriation and nationalization, or deprives the financial institution of its fundamental rights as a creditor following the default of a scheduled loan payment. Policy add-ons include:
    • Currency Inconvertibility (“CI”) / Exchange Transfer (“XT”), Political Violence (“PV”) and Non-Honoring of an Arbitration Award (“AAD”).
  • Contract Frustration (“CF”) protects the policyholder against financial loss due to the non-payment of scheduled payments by a sovereign or private entity.
  • Unfair Calling of Guarantees (“UCG”) protects the insured for the value of a bond (such as a bid, advance payment or performance bond) that was called either as a result of: 1) a wrongful call of the guarantee by a government entity; or 2) a private entity calling the bond due to a political event.


Coverage Highlights


  • Up to $ 100 million per risk
  • Flexible coverage that adapts to clients’ needs and business trends, with coverage duration of up to eight years
  • Non-cancelable program except in the event of non-payment of premium
  • Policy terms and conditions tailored to specific transactions
  • Highest ratings of AA- by Standard and Poor’s, and A+ from A.M. Best
  • Local administration through Euler Hermes New York City office
  • Admitted paper
  • CEN – Multi-country and single-country programs offered
  • CEN – 100% indemnity
  • CF – Up to 95% indemnity for sovereign obligors and up to 90% for private obligors


Interested in Political Risk Insurance? Please contact:

Basil Louvaris – Vice President, Underwriting Manager TCU, World Agency (Americas)
Direct line: +1-212-502-0521
Email: basil.louvaris@eulerhermes.com 
David Williams – Vice President, Regional Manager Commercial Underwriting, World Agency (Americas)
Direct line: +1-212-502-0515
Email: david.williams@eulerhermes.com