Political Violence Insurance

The recent events in Eastern Ukraine have shown how important it is for companies to protect their business against all kinds of unpredictable political violence risks.

Why Political Violence Insurance?

  • Geopolitical instability & unpredictability
  • Low frequency but high severity
  • Traditional PDBI insurance (Property Damage & Business Interruption) excludes political violence risks
  • A large and well-developed political risk insurance market exists for those specific risks

Types of Political Risks

  • Political Violence: The risk of terrorism, sabotage, riots, strikes, civil commotions, malicious damage, insurrection, revolution, rebellion, mutiny, civil war or war. Political violence can be quantified using measures of political stability, peacefulness and specific acts of violence.
  • Other Political Risks (also insurable): Currency inconvertibility and non-transfer. Expropriation, nationalization, confiscation.

Insurance coverage

Political Violence insurance pays compensation for two types of losses:

  • Assets: Damage to covered tangible assets
  • Business Income: Income losses resulting from damage to assets caused by political violence

Risks are covered at 99,99% by Western re-insurers (London market). Fronting is ensured by local carriers in Ukraine.


  • T1: Sabotage and Terrorism. Designed to provide stand-alone coverage where Terrorism and/or Sabotage is excluded from the Property All Risks Policy. Typically purchased in developed countries where there is no perceived threat of civil unrest and/or armed conflict.
  • PV1: Strikes, riots, civil commotion and malicious damage, insurrection, revolution, rebellion, mutiny, coup d’etat. This product eliminates doubt over whether say a riot is covered or not under the Property All-Risks Policy as this policy would respond first in any event. Covers both political and civil unrest.
  • PV1-W: Insurrection, revolution, rebellion, mutiny, coup d’etat, war and civil
    war. The most comprehensive wording available and one which protects clients from all listed perils. This wording is designed specifically for political hot spots, where there is a substantial threat of both political and civil unrest, and a real threat of a cross border incursion by a foreign power.

Call us (+380 67 214 56 24) or send us a message (info@europbrokers.com) for a free consultation on how we can help you protect your business from political violence risks.